Ryder System (NYSE: R) and C.H. Robinson Worldwide (NASDAQ:CHRW) are both mid-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
This is a summary of recent recommendations and price targets for Ryder System and C.H. Robinson Worldwide, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|C.H. Robinson Worldwide||3||6||4||0||2.08|
Ryder System presently has a consensus target price of $75.25, indicating a potential downside of 5.30%. C.H. Robinson Worldwide has a consensus target price of $71.38, indicating a potential downside of 0.09%. Given C.H. Robinson Worldwide’s higher possible upside, analysts clearly believe C.H. Robinson Worldwide is more favorable than Ryder System.
Risk and Volatility
Ryder System has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.
Earnings & Valuation
This table compares Ryder System and C.H. Robinson Worldwide’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ryder System||$6.99 billion||0.60||$1.82 billion||$4.17||19.06|
|C.H. Robinson Worldwide||$13.90 billion||0.72||$848.19 million||$3.40||21.01|
Ryder System has higher revenue, but lower earnings than C.H. Robinson Worldwide. Ryder System is trading at a lower price-to-earnings ratio than C.H. Robinson Worldwide, indicating that it is currently the more affordable of the two stocks.
Ryder System pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. C.H. Robinson Worldwide pays an annual dividend of $1.80 per share and has a dividend yield of 2.5%. Ryder System pays out 44.1% of its earnings in the form of a dividend. C.H. Robinson Worldwide pays out 52.9% 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. Ryder System has raised its dividend for 8 consecutive years and C.H. Robinson Worldwide has raised its dividend for 10 consecutive years. C.H. Robinson Worldwide is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Ryder System and C.H. Robinson Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|C.H. Robinson Worldwide||3.49%||37.41%||12.84%|
Insider & Institutional Ownership
89.5% of Ryder System shares are owned by institutional investors. Comparatively, 90.1% of C.H. Robinson Worldwide shares are owned by institutional investors. 2.0% of Ryder System shares are owned by insiders. Comparatively, 0.9% of C.H. Robinson Worldwide shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
C.H. Robinson Worldwide beats Ryder System on 11 of the 17 factors compared between the two stocks.
About Ryder System
Ryder System, Inc. is engaged in offering transportation and supply chain management solutions. The Company operates through three segments: Fleet Management Solutions (FMS), which provides leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the United States, Canada and the United Kingdom; Dedicated Transportation Solutions (DTS), which provides vehicles and drivers as part of a dedicated transportation solution in the United States, and Supply Chain Solutions (SCS), which provides supply chain solutions, including distribution and transportation services in North America and Asia. Through its FMS business, the Company provides its customers with various fleet solutions. In addition, it provides its customers to purchase a selection of used trucks, tractors and trailers through its used vehicle sales program. Its customer base includes enterprises operating in various industries.
About C.H. Robinson Worldwide
C.H. Robinson Worldwide, Inc. is a provider of transportation services and logistics solutions through a network of offices operating in North America, Europe, Asia, Australia, New Zealand and South America. The Company’s segments include North American Surface Transportation (NAST), Global Forwarding, Robinson Fresh, and All Other and Corporate. The NAST segment provides freight transportation services across North America through a network of offices in the United States, Canada and Mexico. The primary services provided by Global Forwarding segment include ocean freight services, air freight services, and customs brokerage. The Robinson Fresh segment provides sourcing under the trade name Robinson Fresh. The All Other and Corporate segment primarily consists of Managed Services and Other Surface Transportation outside of North America. It develops global transportation and distribution networks to provide transportation and supply chain services throughout the world.
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