Critical Contrast: Vitran Corporation, Inc. (USA) (VTNC) versus Ryder System (R)

Vitran Corporation, Inc. (USA) (NASDAQ: VTNC) and Ryder System (NYSE:R) are both ground freight & logistics – nec companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Dividends

Ryder System pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. Vitran Corporation, Inc. (USA) does not pay a dividend. Ryder System pays out 49.9% of its earnings in the form of a dividend. Ryder System has raised its dividend for 8 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for Vitran Corporation, Inc. (USA) and Ryder System, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vitran Corporation, Inc. (USA) 0 0 0 0 N/A
Ryder System 0 5 4 0 2.44

Ryder System has a consensus target price of $83.83, suggesting a potential upside of 6.23%. Given Ryder System’s higher possible upside, analysts plainly believe Ryder System is more favorable than Vitran Corporation, Inc. (USA).

Volatility and Risk

Vitran Corporation, Inc. (USA) has a beta of 2.37, meaning that its share price is 137% more volatile than the S&P 500. Comparatively, Ryder System has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Insider & Institutional Ownership

88.9% of Ryder System shares are owned by institutional investors. 2.0% of Ryder System shares are owned by company 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.

Profitability

This table compares Vitran Corporation, Inc. (USA) and Ryder System’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vitran Corporation, Inc. (USA) N/A N/A N/A
Ryder System 2.75% 10.72% 2.04%

Valuation and Earnings

This table compares Vitran Corporation, Inc. (USA) and Ryder System’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Vitran Corporation, Inc. (USA) N/A N/A N/A ($1.87) -3.47
Ryder System $6.79 billion 0.62 $262.47 million $3.69 21.39

Ryder System has higher revenue and earnings than Vitran Corporation, Inc. (USA). Vitran Corporation, Inc. (USA) is trading at a lower price-to-earnings ratio than Ryder System, indicating that it is currently the more affordable of the two stocks.

Summary

Ryder System beats Vitran Corporation, Inc. (USA) on 11 of the 13 factors compared between the two stocks.

Vitran Corporation, Inc. (USA) Company Profile

Vitran Corporation Inc. (Vitran), is a provider of freight surface transportation and related supply chain services throughout Canada 34 states in the eastern, southeastern, central, southwestern, and western United States. The Company’s business consists of Less-than-truckload services (LTL). These services are provided by stand-alone business units within their respective regions. Vitran’s business is carried on through its subsidiaries, which hold the licenses and permits required to carry on business. In March 2013, Vitran Corp Inc completed divestiture of its Supply Chain Operation division to Legacy Supply Chain. In October 2013, Vitran Corporation Inc. completed the sale of its United States LTL business. In March 2014, TransForce Inc completed the acquisition of Vitran.

Ryder System Company Profile

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.

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