Analyzing EuroDry (NASDAQ:EDRY) and Pangaea Logistics Solutions (NASDAQ:PANL)

EuroDry (NASDAQ:EDRY) and Pangaea Logistics Solutions (NASDAQ:PANL) are both small-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Valuation & Earnings

This table compares EuroDry and Pangaea Logistics Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EuroDry	$52.26 million	1.14	-$4.26 million	($1.57)	-13.13
Pangaea Logistics Solutions	$632.04 million	0.84	$19.37 million	$0.55	14.84

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

Analyst Ratings

This is a summary of recent recommendations for EuroDry and Pangaea Logistics Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EuroDry	1	1	1	0	2.00
Pangaea Logistics Solutions	0	1	2	0	2.67

EuroDry presently has a consensus target price of $23.50, suggesting a potential upside of 14.02%. Pangaea Logistics Solutions has a consensus target price of $9.00, suggesting a potential upside of 10.29%. Given EuroDry’s higher probable upside, equities analysts plainly believe EuroDry is more favorable than Pangaea Logistics Solutions.

Insider and Institutional Ownership

2.4% of EuroDry shares are owned by institutional investors. Comparatively, 60.2% of Pangaea Logistics Solutions shares are owned by institutional investors. 16.7% of Pangaea Logistics Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares EuroDry and Pangaea Logistics Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EuroDry	-8.16%	-6.83%	-3.31%
Pangaea Logistics Solutions	5.10%	5.71%	2.89%

Volatility and Risk

EuroDry has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Pangaea Logistics Solutions has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Summary

Pangaea Logistics Solutions beats EuroDry on 12 of the 14 factors compared between the two stocks.

About EuroDry

EuroDry Ltd., through its subsidiaries, provides ocean-going transportation services worldwide. It owns and operates a fleet of drybulk carriers that transport major bulks, such as iron ore, coal, and grains; and minor bulks, including bauxite, phosphate, and fertilizers. The company fleet consisted of 13 drybulk carriers comprising five Panamax drybulk carriers, two Kamsarmax, five Ultramax drybulk carriers, and one Supramax drybulk carrier with a total cargo carrying capacity of 918,502 dwt. EuroDry Ltd. was incorporated in 2018 and is based in Marousi, Greece.

About Pangaea Logistics Solutions

Pangaea Logistics Solutions, Ltd., together with its subsidiaries, provides seaborne dry bulk logistics and transportation services to industrial customers worldwide. It offers various dry bulk cargoes, such as grains, coal, iron ore, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The company's ocean logistics services comprise cargo loading, cargo discharge, vessel chartering, voyage planning, and technical vessel management. It owns and operates a fleet of vessels. The company was founded in 1996 and is headquartered in Newport, Rhode Island.