Patriot Transportation (NASDAQ:PATI) and ZTO Express (Cayman) (NYSE:ZTO) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Profitability

This table compares Patriot Transportation and ZTO Express (Cayman)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Patriot Transportation 4.14% 8.31% 6.18%
ZTO Express (Cayman) 26.44% 16.01% 13.62%

Volatility & Risk

Patriot Transportation has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500. Comparatively, ZTO Express (Cayman) has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Earnings & Valuation

This table compares Patriot Transportation and ZTO Express (Cayman)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Patriot Transportation $112.17 million 0.59 $1.82 million N/A N/A
ZTO Express (Cayman) $2.01 billion 4.29 $485.39 million $0.69 24.59

ZTO Express (Cayman) has higher revenue and earnings than Patriot Transportation.

Analyst Ratings

This is a breakdown of current recommendations for Patriot Transportation and ZTO Express (Cayman), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patriot Transportation 0 0 0 0 N/A
ZTO Express (Cayman) 1 1 1 0 2.00

ZTO Express (Cayman) has a consensus target price of $23.00, suggesting a potential upside of 35.53%. Given ZTO Express (Cayman)’s higher possible upside, analysts clearly believe ZTO Express (Cayman) is more favorable than Patriot Transportation.

Institutional and Insider Ownership

49.1% of Patriot Transportation shares are owned by institutional investors. Comparatively, 31.2% of ZTO Express (Cayman) shares are owned by institutional investors. 11.8% of Patriot Transportation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

ZTO Express (Cayman) beats Patriot Transportation on 10 of the 12 factors compared between the two stocks.

About Patriot Transportation

Patriot Transportation Holding, Inc., through its subsidiary Florida Rock & Tank Lines, Inc., engages in the transportation business. The company is involved in hauling petroleum related products, including gas and diesel fuel; and dry bulk commodities, such as cement, lime and various industrial powder products, and liquid chemicals. It primarily serves convenience stores and hypermarket accounts, fuel wholesalers, and oil companies, as well as industrial companies comprising cement and concrete accounts, and product distribution companies. As of September 30, 2017, the company operated a fleet of 451 tractors and 558 tank trailers, and 21 terminals and 7 satellite locations. Patriot Transportation Holding, Inc. is headquartered in Jacksonville, Florida.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company offers delivery services for e-commerce and traditional merchants, and other express service users. As of December 31, 2017, it operated a fleet of approximately 3,600 self-owned trucks. ZTO Express (Cayman) Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.

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