Universal Logistics (NASDAQ:ULH) and YRC Worldwide (NASDAQ:YRCW) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.
Valuation and Earnings
This table compares Universal Logistics and YRC Worldwide’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Universal Logistics||$1.22 billion||0.85||$28.15 million||$0.73||49.60|
|YRC Worldwide||$4.89 billion||0.06||-$10.80 million||$0.15||61.53|
Universal Logistics has higher earnings, but lower revenue than YRC Worldwide. Universal Logistics is trading at a lower price-to-earnings ratio than YRC Worldwide, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Universal Logistics and YRC Worldwide, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Universal Logistics currently has a consensus target price of $34.00, indicating a potential downside of 6.10%. YRC Worldwide has a consensus target price of $16.25, indicating a potential upside of 76.06%. Given YRC Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe YRC Worldwide is more favorable than Universal Logistics.
This table compares Universal Logistics and YRC Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
26.6% of Universal Logistics shares are owned by institutional investors. Comparatively, 78.2% of YRC Worldwide shares are owned by institutional investors. 71.0% of Universal Logistics shares are owned by insiders. Comparatively, 4.7% of YRC Worldwide shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Universal Logistics has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, YRC Worldwide has a beta of 3.65, indicating that its stock price is 265% more volatile than the S&P 500.
Universal Logistics pays an annual dividend of $0.42 per share and has a dividend yield of 1.2%. YRC Worldwide does not pay a dividend. Universal Logistics pays out 57.5% of its earnings in the form of a dividend.
Universal Logistics Company Profile
Universal Logistics Holdings, Inc. provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. It offers transportation services including dry van, flatbed, heavy haul, and refrigerated services; domestic and international freight forwarding and customs brokerage services; and final mile and ground expedite services. The company transports various commodities comprising automotive parts, machinery, building materials, paper, food, consumer goods, furniture, steel, and other metals. It also offers value-added services for customer requirements, including material handling, consolidation, sequencing, sub-assembly, cross-dock services, kitting, repacking, warehousing, and returnable container management; and intermodal support services comprising short-to-medium distance delivery of rail and steamship containers between the railhead or port, and the customer and drayage services. Universal Logistics Holdings, Inc. serves automotive, steel, oil and gas, alternative energy, and manufacturing industries, as well as other transportation companies who aggregate loads from various shippers. The company was formerly known as Universal Truckload Services, Inc. and changed its name to Universal Logistics Holdings, Inc. in April 2016. Universal Logistics Holdings, Inc. was founded in 1981 and is headquartered in Warren, Michigan.
YRC Worldwide Company Profile
YRC Worldwide Inc., through its subsidiaries, provides various transportation services primarily in North America. Its YRC Freight segment offers various services to transport industrial, commercial, and retail goods; and provides specialized services, including guaranteed expedited services, time-specific deliveries, cross-border services, coast-to-coast air delivery, product returns, temperature-sensitive shipment protection, and government material shipments. It serves manufacturing, wholesale, retail, and government customers. As of December 31, 2017, this segment had a fleet of approximately 7,600 tractors comprising 5,900 owned and 1,700 leased; and 30,900 trailers consisting of 23,800 owned and 7,100 leased. The company's Regional Transportation segment provides regional delivery services, which include next-day local area delivery and second-day services, consolidation/distribution services, protect-from-freezing and hazardous materials handling, truck loading, and other specialized offerings; guaranteed and expedited delivery services consisting of day-definite, hour-definite, and time definite capabilities; interregional delivery services; and cross-border delivery services, as well as operates hollandregional.com, newpenn.com, and reddawayregional.com, which are e-commerce Websites offering online resources to manage transportation activities. This segment had a fleet of approximately 6,500 tractors, including 4,700 owned and 1,800 leased; and 13,700 trailers comprising 10,500 owned and 3,200 leased. The company was formerly known as Yellow Roadway Corporation and changed its name to YRC Worldwide Inc. in January 2006. YRC Worldwide Inc. was founded in 1924 and is headquartered in Overland Park, Kansas.
Receive News & Ratings for Universal Logistics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Universal Logistics and related companies with MarketBeat.com's FREE daily email newsletter.