Head-To-Head Analysis: C.H. Robinson Worldwide (CHRW) & YRC Worldwide (YRCW)

C.H. Robinson Worldwide (NASDAQ: CHRW) and YRC Worldwide (NASDAQ:YRCW) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Valuation and Earnings

This table compares C.H. Robinson Worldwide and YRC Worldwide’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
C.H. Robinson Worldwide $13.90 billion 0.69 $848.19 million $3.40 20.01
YRC Worldwide $4.80 billion 0.08 $254.10 million ($0.02) -606.20

C.H. Robinson Worldwide has higher revenue and earnings than YRC Worldwide. YRC Worldwide 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.

Volatility and Risk

C.H. Robinson Worldwide has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, YRC Worldwide has a beta of 3.74, meaning that its stock price is 274% more volatile than the S&P 500.

Profitability

This table compares C.H. Robinson Worldwide and YRC 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%
YRC Worldwide N/A -0.70% 0.16%

Dividends

C.H. Robinson Worldwide pays an annual dividend of $1.80 per share and has a dividend yield of 2.6%. YRC Worldwide does not pay a dividend. C.H. Robinson Worldwide pays out 52.9% of its earnings in the form of a dividend. YRC Worldwide has raised its dividend for 10 consecutive years.

Analyst Recommendations

This is a summary of current ratings for C.H. Robinson Worldwide and YRC Worldwide, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
C.H. Robinson Worldwide 3 6 3 0 2.00
YRC Worldwide 0 2 3 0 2.60

C.H. Robinson Worldwide currently has a consensus target price of $69.83, indicating a potential upside of 2.67%. YRC Worldwide has a consensus target price of $16.33, indicating a potential upside of 34.65%. Given YRC Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe YRC Worldwide is more favorable than C.H. Robinson Worldwide.

Institutional and Insider Ownership

90.7% of C.H. Robinson Worldwide shares are held by institutional investors. Comparatively, 87.5% of YRC Worldwide shares are held by institutional investors. 0.9% of C.H. Robinson Worldwide shares are held by company insiders. Comparatively, 3.7% of YRC Worldwide shares are held 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.

Summary

C.H. Robinson Worldwide beats YRC Worldwide on 9 of the 16 factors compared between the two stocks.

C.H. Robinson Worldwide Company Profile

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.

YRC Worldwide Company Profile

YRC Worldwide Inc. is a holding company. The Company, through its subsidiaries, offers its customers a range of transportation services. The Company operates through two segments: YRC Freight and Regional Transportation. The Company has less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. YRC Freight segment offers a range of services for the transportation of industrial, commercial and retail goods in national, regional and international markets, primarily through the operation of owned or leased equipment in its North American ground distribution network. It provides transportation services for various categories of goods, which include apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal and metal products. YRC Worldwide Inc. brands include YRC, YRC Reimer, YRC Glen Moore, YRC Logistics, New Penn, Holland and Reddaway.

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