Financial Review: USA Truck (USAK) versus FRP Holdings (FRPH)

USA Truck (NASDAQ: USAK) and FRP Holdings (NASDAQ:FRPH) are both small-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Earnings & Valuation

This table compares USA Truck and FRP Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
USA Truck $417.62 million 0.27 $18.65 million ($1.53) -9.02
FRP Holdings $32.09 million 13.92 $21.12 million $0.68 65.66

FRP Holdings has higher revenue, but lower earnings than USA Truck. USA Truck is trading at a lower price-to-earnings ratio than FRP Holdings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares USA Truck and FRP Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USA Truck -2.94% -20.68% -4.09%
FRP Holdings 17.90% 3.40% 2.53%

Analyst Ratings

This is a breakdown of current recommendations for USA Truck and FRP Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USA Truck 0 1 2 0 2.67
FRP Holdings 0 0 0 0 N/A

USA Truck currently has a consensus target price of $10.75, indicating a potential downside of 22.10%. Given USA Truck’s higher probable upside, research analysts clearly believe USA Truck is more favorable than FRP Holdings.

Risk and Volatility

USA Truck has a beta of 2.58, indicating that its share price is 158% more volatile than the S&P 500. Comparatively, FRP Holdings has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Institutional & Insider Ownership

52.9% of USA Truck shares are held by institutional investors. Comparatively, 45.5% of FRP Holdings shares are held by institutional investors. 3.5% of USA Truck shares are held by company insiders. Comparatively, 23.3% of FRP Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

FRP Holdings beats USA Truck on 7 of the 12 factors compared between the two stocks.

About USA Truck

USA Truck, Inc. is a truckload carrier providing transportation of general commodities throughout the continental United States and into and out of portions of Mexico and Canada. The Company operates through two segments: Trucking and Strategic Capacity Solutions (SCS). The Trucking segment consists of truckload and dedicated freight services. The SCS segment consists of freight brokerage and rail intermodal services. The Company transports full dry van trailer loads of freight from origin to destination without intermediate stops or handling. The Company offers a range of truckload and logistics services to a customer base that spans a range of industries. The Company’s fleet of approximately 1,832 tractors consists of 1,568 company tractors and 264 independent contractor tractors. The Company owns approximately 6,200 trailers. The Company also transports general commodities into and out of Mexico by allowing through-trailer service from its terminal in Laredo, Texas.

About FRP Holdings

FRP Holdings, Inc. is a holding company engaged in various real estate businesses. The Company conducts its business through its subsidiaries, FRP Maryland, Inc., FRP Development Corp. and Florida Rock Properties, Inc. The segments of the Company include leasing and management of warehouse and office building owned by the Company (the Asset Management Segment), leasing and management of mining royalty land owned by the Company (the Mining Royalty Lands Segment) and real property acquisition, entitlement, development and construction primarily for warehouse and office buildings (the Land Development and Construction Segment). The Company’s Asset Management Segment owns leases and manages warehouse and office buildings. Its Mining Royalty Lands Segment owns several properties comprising approximately 15,000 acres under lease for mining rents or royalties. Its Land Development and Construction Segment owns and monitors the parcels of land that are in various stages of development.

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