Pangaea Logistics Solutions (NASDAQ:PANL – Get Free Report) and A.P. Moller-Maersk (OTCMKTS:AMKBY – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares Pangaea Logistics Solutions and A.P. Moller-Maersk’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pangaea Logistics Solutions | 9.68% | 13.64% | 7.07% |
| A.P. Moller-Maersk | 7.04% | 8.14% | 5.21% |
Valuation & Earnings
This table compares Pangaea Logistics Solutions and A.P. Moller-Maersk”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pangaea Logistics Solutions | $760.64 million | 0.74 | $19.37 million | $1.15 | 7.43 |
| A.P. Moller-Maersk | $53.99 billion | 0.85 | $2.73 billion | $1.46 | 9.91 |
A.P. Moller-Maersk has higher revenue and earnings than Pangaea Logistics Solutions. Pangaea Logistics Solutions is trading at a lower price-to-earnings ratio than A.P. Moller-Maersk, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
60.2% of Pangaea Logistics Solutions shares are held by institutional investors. 16.7% of Pangaea Logistics Solutions shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Dividends
Pangaea Logistics Solutions pays an annual dividend of $0.40 per share and has a dividend yield of 4.7%. A.P. Moller-Maersk pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Pangaea Logistics Solutions pays out 34.8% of its earnings in the form of a dividend. A.P. Moller-Maersk pays out 13.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Analyst Ratings
This is a summary of current recommendations and price targets for Pangaea Logistics Solutions and A.P. Moller-Maersk, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pangaea Logistics Solutions | 0 | 1 | 2 | 0 | 2.67 |
| A.P. Moller-Maersk | 5 | 6 | 0 | 2 | 1.92 |
Volatility & Risk
Pangaea Logistics Solutions has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, A.P. Moller-Maersk has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.
Summary
Pangaea Logistics Solutions beats A.P. Moller-Maersk on 9 of the 16 factors compared between the two stocks.
About Pangaea Logistics Solutions
Pangaea Logistics Solutions Ltd. (NASDAQ:PANL) is a global provider of drybulk shipping and logistics services. The company transports industrial commodities for customers and manages the movement of cargo from origin to destination, combining marine transportation with related supply-chain services. Pangaea owns and operates a fleet of drybulk vessels, including Handysize, Supramax and Panamax-class ships. Its cargoes include a range of drybulk commodities such as coal, grain, cement, salt, gypsum, dolomite and iron ore.
About A.P. Moller-Maersk
A.P. Moller-Maersk is a Danish transport and logistics company headquartered in Copenhagen. Founded in 1904, it has grown from a shipping business into a global provider of services that help move goods through international supply chains. The company’s activities include container shipping, port operations through APM Terminals, and logistics services such as freight forwarding, warehousing and supply chain management. Its services connect customers with suppliers and markets around the world. Maersk serves businesses across a broad range of industries and operates in markets worldwide.
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