A.P. Moller-Maersk (OTCMKTS:AMKBY – Get Free Report) and Pangaea Logistics Solutions (NASDAQ:PANL – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
Profitability
This table compares A.P. Moller-Maersk and Pangaea Logistics Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| A.P. Moller-Maersk | 7.04% | 8.14% | 5.21% |
| Pangaea Logistics Solutions | 9.68% | 13.94% | 7.16% |
Earnings & Valuation
This table compares A.P. Moller-Maersk and Pangaea Logistics Solutions”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| A.P. Moller-Maersk | $53.99 billion | 0.88 | $2.73 billion | $0.78 | 19.31 |
| Pangaea Logistics Solutions | $710.25 million | 0.70 | $19.37 million | $1.15 | 6.58 |
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.
Dividends
A.P. Moller-Maersk pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Pangaea Logistics Solutions pays an annual dividend of $0.40 per share and has a dividend yield of 5.3%. A.P. Moller-Maersk pays out 25.6% of its earnings in the form of a dividend. Pangaea Logistics Solutions pays out 34.8% 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.
Institutional and Insider Ownership
60.2% of Pangaea Logistics Solutions shares are owned by institutional investors. 16.7% of Pangaea Logistics Solutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
A.P. Moller-Maersk has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Pangaea Logistics Solutions has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for A.P. Moller-Maersk and Pangaea Logistics Solutions, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| A.P. Moller-Maersk | 5 | 6 | 0 | 2 | 1.92 |
| Pangaea Logistics Solutions | 0 | 1 | 2 | 0 | 2.67 |
Summary
Pangaea Logistics Solutions beats A.P. Moller-Maersk on 10 of the 16 factors compared between the two stocks.
About A.P. Moller-Maersk
A.P. Møller – Mærsk A/S, together with its subsidiaries, engages in the ocean transport and logistics business in Denmark and internationally. It operates through Ocean, Logistics & Services, Terminals, and Towage & Maritime Services segments. The Ocean segment is involved in container shipping activities, including demurrage and detention, terminal handling, documentation and container services, and container storage, as well as transshipment hubs. The Logistics & Services segment offers integrated transportation solutions; fulfillment and management solutions, such as landside and air transportation; warehousing, distribution, and depot services; and supply chain management, cold chain logistics, and custom brokerage services. The Terminals segment engages in gateway terminal activities. The Towage & Maritime Services segment provides offshore towage and marine services under the Svitzer brand; reefer containers; offshore supply services; trading; and marine services and integrated solutions to the energy sector. It also offers digital solutions that offer booking, managing, tracking of shipments, and other related activities. The company serves fashion and lifestyle, retail, automotive, chemicals, technology, and FMCG industries. A.P. Møller – Mærsk A/S was founded in 1904 and is headquartered in Copenhagen, Denmark.
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.
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