Critical Review: Lyft (NASDAQ:LYFT) & PAMT (NASDAQ:PAMT)

Lyft (NASDAQ:LYFT) and PAMT (NASDAQ:PAMT) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Earnings & Valuation

This table compares Lyft and PAMT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lyft	$6.77 billion	0.98	$2.84 billion	$6.88	2.55
PAMT	$598.06 million	0.47	-$52.61 million	($2.03)	-6.62

Lyft has higher revenue and earnings than PAMT. PAMT is trading at a lower price-to-earnings ratio than Lyft, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lyft and PAMT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lyft	42.32%	-1.20%	-0.36%
PAMT	-7.07%	-13.55%	-4.27%

Institutional and Insider Ownership

83.1% of Lyft shares are owned by institutional investors. Comparatively, 22.1% of PAMT shares are owned by institutional investors. 0.9% of Lyft shares are owned by insiders. Comparatively, 77.2% of PAMT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Lyft has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, PAMT has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Lyft and PAMT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lyft	2	22	13	0	2.30
PAMT	1	0	0	0	1.00

Lyft currently has a consensus target price of $19.80, indicating a potential upside of 12.88%. Given Lyft’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Lyft is more favorable than PAMT.

Summary

Lyft beats PAMT on 13 of the 14 factors compared between the two stocks.

About Lyft

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. It also offers centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

About PAMT

PAMT Corp. is a holding company, which engages in the provision of truckload and logistics services through its subsidiaries. Its freight consists primarily of automotive parts, expedited goods, consumer goods, such as general retail store merchandise, and manufactured goods, such as heating and air conditioning units. The company was founded in June 1986 and is headquartered in Tontitown, AR.