Analyzing Core-Mark Holding (NASDAQ:CORE) and Roadrunner Transportation Systems (RRTS)

Roadrunner Transportation Systems (NYSE: RRTS) and Core-Mark Holding (NASDAQ:CORE) are both small-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Dividends

Core-Mark Holding pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Roadrunner Transportation Systems does not pay a dividend. Core-Mark Holding pays out 40.0% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Roadrunner Transportation Systems and Core-Mark Holding’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Roadrunner Transportation Systems $1.97 billion 0.13 $100.85 million $0.66 10.35
Core-Mark Holding $11.83 billion 0.10 $117.80 million $0.90 29.46

Core-Mark Holding has higher revenue and earnings than Roadrunner Transportation Systems. Roadrunner Transportation Systems is trading at a lower price-to-earnings ratio than Core-Mark Holding, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Roadrunner Transportation Systems and Core-Mark Holding, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roadrunner Transportation Systems 0 2 1 0 2.33
Core-Mark Holding 0 1 3 0 2.75

Roadrunner Transportation Systems currently has a consensus price target of $9.67, indicating a potential upside of 41.53%. Core-Mark Holding has a consensus price target of $39.50, indicating a potential upside of 49.00%. Given Core-Mark Holding’s stronger consensus rating and higher possible upside, analysts clearly believe Core-Mark Holding is more favorable than Roadrunner Transportation Systems.

Profitability

This table compares Roadrunner Transportation Systems and Core-Mark Holding’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roadrunner Transportation Systems N/A N/A N/A
Core-Mark Holding 0.27% 9.70% 3.56%

Institutional & Insider Ownership

74.9% of Roadrunner Transportation Systems shares are owned by institutional investors. Comparatively, 98.3% of Core-Mark Holding shares are owned by institutional investors. 25.8% of Roadrunner Transportation Systems shares are owned by company insiders. Comparatively, 2.4% of Core-Mark Holding shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Roadrunner Transportation Systems has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Core-Mark Holding has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Summary

Core-Mark Holding beats Roadrunner Transportation Systems on 13 of the 16 factors compared between the two stocks.

About Roadrunner Transportation Systems

Roadrunner Transportation Systems, Inc. (RRTS) is an asset-light transportation and logistics service provider. The Company offers a suite of global supply chain solutions, including truckload logistics (TL), customized and expedited less-than-truckload (LTL), intermodal solutions (transporting a shipment by over one mode, primarily through rail and truck), freight consolidation, inventory management, expedited services, air freight, international freight forwarding, customs brokerage and transportation management solutions. The Company operates through three segments: Truckload Logistics, Less-than-Truckload and Global Solutions. The Company utilizes a third-party network of transportation providers, consisting of independent contractors (ICs) and purchased power providers, to serve a diverse customer base. It primarily focuses on small to mid-size shippers.

About Core-Mark Holding

Core-Mark Holding Company, Inc. is a wholesale distributor to the convenience retail industry in North America. The Company provides sales, marketing, distribution and logistics services. As of December 31, 2016, the Company offered services to over 43,000 customer locations across the United States and Canada through 30 distribution centers. The Company’s segments include the United States, Canada and Corporate. The Company’s primary customer base consists of traditional convenience stores, as well as alternative outlets selling consumer packaged goods. The Company’s traditional convenience store customers include various national and super-regional convenience store operators, as well as independently owned convenience stores. Its alternative outlet customers include a range of store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos and hardware stores.

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