Landstar System (NASDAQ: LSTR) and Marten Transport (NASDAQ:MRTN) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.
Volatility & Risk
Landstar System has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Marten Transport has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.
This table compares Landstar System and Marten Transport’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for Landstar System and Marten Transport, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Landstar System presently has a consensus target price of $92.30, indicating a potential downside of 6.86%. Marten Transport has a consensus target price of $15.00, indicating a potential downside of 21.05%. Given Landstar System’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Landstar System is more favorable than Marten Transport.
Insider & Institutional Ownership
97.0% of Landstar System shares are owned by institutional investors. Comparatively, 42.4% of Marten Transport shares are owned by institutional investors. 1.0% of Landstar System shares are owned by company insiders. Comparatively, 23.0% of Marten Transport shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Landstar System and Marten Transport’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Landstar System||$3.33 billion||1.25||$271.70 million||$3.46||28.64|
|Marten Transport||$687.80 million||1.51||$133.29 million||$0.63||30.35|
Landstar System has higher revenue and earnings than Marten Transport. Landstar System is trading at a lower price-to-earnings ratio than Marten Transport, indicating that it is currently the more affordable of the two stocks.
Landstar System pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Marten Transport pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. Landstar System pays out 11.6% of its earnings in the form of a dividend. Marten Transport pays out 16.0% 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.
Landstar System beats Marten Transport on 10 of the 16 factors compared between the two stocks.
Landstar System Company Profile
Landstar System, Inc. (Landstar) is an asset-light provider of integrated transportation management solutions. The Company offers services to its customers across multiple transportation modes, with the ability to arrange for individual shipments of freight to enterprise solutions to manage customer’s transportation needs. It operates in two segments: the Transportation Logistics segment and the Insurance segment. The Transportation Logistics segment provides a range of integrated transportation management solutions. Transportation services offered by it include truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul or specialized, the United States-Canada and the United States-Mexico cross-border, project cargo and customs brokerage. The insurance segment consists of Signature Insurance Company, which is an offshore insurance subsidiary, and Risk Management Claim Services, Inc.
Marten Transport Company Profile
Marten Transport, Ltd. is a temperature-sensitive truckload carrier. The Company focuses on transporting and distributing food and other consumer-packaged goods that require a temperature-controlled or insulated environment. The Company operates through four segments: Truckload, Dedicated, Intermodal and Brokerage. It operates throughout the United States and in parts of Canada and Mexico. The Company’s medium-to-long-haul traffic lanes are between the Midwest and the West Coast, Southwest, Southeast, and the East Coast, as well as from California to the Pacific Northwest. It provides regional truckload carrier services in the Southeast, West Coast, Midwest, South Central and Northeast regions. It also offers loading and unloading activities, equipment detention and other ancillary services. The Company’s Truckload segment provides a combination of regional short-haul and medium-to-long-haul full-load transportation services.
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