Reviewing A.P. Moller-Maersk (OTCMKTS:AMKBY) & Pangaea Logistics Solutions (NASDAQ:PANL)

Pangaea Logistics Solutions (NASDAQ:PANL) and A.P. Moller-Maersk (OTCMKTS:AMKBY) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Dividends

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 an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Pangaea Logistics Solutions pays out 34.8% of its earnings in the form of a dividend. A.P. Moller-Maersk pays out 25.6% 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.

Profitability

This table compares Pangaea Logistics Solutions and A.P. Moller-Maersk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pangaea Logistics Solutions	9.68%	13.94%	7.16%
A.P. Moller-Maersk	7.04%	8.14%	5.21%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Pangaea Logistics Solutions and A.P. Moller-Maersk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pangaea Logistics Solutions	0	1	2	0	2.67
A.P. Moller-Maersk	5	6	0	2	1.92

Volatility and Risk

Pangaea Logistics Solutions has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, A.P. Moller-Maersk has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Insider & Institutional Ownership

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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Pangaea Logistics Solutions and A.P. Moller-Maersk”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pangaea Logistics Solutions	$710.25 million	0.70	$19.37 million	$1.15	6.58
A.P. Moller-Maersk	$53.99 billion	0.88	$2.73 billion	$0.78	19.31

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.

Summary

Pangaea Logistics Solutions beats A.P. Moller-Maersk on 10 of the 16 factors compared between the two stocks.

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.

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.