Critical Comparison: Addentax Group (NASDAQ:ATXG) and PostNL (OTCMKTS:TNTFF)

PostNL (OTCMKTS:TNTFF) and Addentax Group (NASDAQ:ATXG) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Profitability

This table compares PostNL and Addentax Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PostNL	N/A	N/A	N/A
Addentax Group	-21.05%	-9.16%	-7.22%

Insider & Institutional Ownership

40.4% of PostNL shares are held by institutional investors. Comparatively, 10.1% of Addentax Group shares are held by institutional investors. 2.7% of Addentax Group shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings for PostNL and Addentax Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PostNL	0	0	0	0	0.00
Addentax Group	1	0	0	0	1.00

Valuation & Earnings

This table compares PostNL and Addentax Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PostNL	N/A	N/A	N/A	$0.29	3.91
Addentax Group	$5.37 million	0.82	-$4.47 million	($3.92)	-0.96

PostNL has higher earnings, but lower revenue than Addentax Group. Addentax Group is trading at a lower price-to-earnings ratio than PostNL, indicating that it is currently the more affordable of the two stocks.

Summary

PostNL beats Addentax Group on 6 of the 9 factors compared between the two stocks.

About PostNL

PostNL N.V. provides postal and logistics services to businesses and consumers in the Netherlands, rest of Europe, and internationally. The company operates through Parcels and Mail in the Netherlands and PostNL Other segments. It collects, sorts, transports, and delivers letters and parcels; and offers data management, direct marketing, and fulfillment services, as well as cross-border mail and parcels solutions. The company was formerly known as TNT N.V. and changed its name to PostNL N.V. in May 2011. PostNL N.V. is based in the Hague, the Netherlands.

About Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.