ArcBest Corp (NASDAQ: ARCB) and CSX Corporation (NASDAQ:CSX) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
This is a breakdown of current ratings and recommmendations for ArcBest Corp and CSX Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ArcBest Corp presently has a consensus target price of $25.50, indicating a potential downside of 1.92%. CSX Corporation has a consensus target price of $53.78, indicating a potential upside of 10.26%. Given CSX Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe CSX Corporation is more favorable than ArcBest Corp.
This table compares ArcBest Corp and CSX Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
85.1% of ArcBest Corp shares are owned by institutional investors. Comparatively, 70.3% of CSX Corporation shares are owned by institutional investors. 1.0% of ArcBest Corp shares are owned by company insiders. Comparatively, 4.8% of CSX Corporation 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.
ArcBest Corp pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. CSX Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.6%. ArcBest Corp pays out 37.2% of its earnings in the form of a dividend. CSX Corporation pays out 41.9% 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.
Valuation and Earnings
This table compares ArcBest Corp and CSX Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ArcBest Corp||$2.77 billion||0.24||$146.83 million||$0.86||30.23|
|CSX Corporation||$11.55 billion||3.86||$5.20 billion||$1.91||25.54|
CSX Corporation has higher revenue and earnings than ArcBest Corp. CSX Corporation is trading at a lower price-to-earnings ratio than ArcBest Corp, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
ArcBest Corp has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, CSX Corporation has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
CSX Corporation beats ArcBest Corp on 12 of the 16 factors compared between the two stocks.
ArcBest Corp Company Profile
ArcBest Corporation is a holding company of businesses providing integrated logistics solutions. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. Its ArcBest segment includes truckload, expedite, international, warehousing, freight transportation, management services and moving services. Its FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles to customers in the United States and Canada through a network of third-party service providers.
CSX Corporation Company Profile
CSX Corporation is a transportation company. The Company provides rail-based freight transportation services, including traditional rail service and transport of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. The Company categorizes its products into three primary lines of business: merchandise, intermodal and coal. The Company’s intermodal business links customers to railroads through trucks and terminals. The Company’s merchandise business consists of shipments in markets, such as agricultural and food products, fertilizers, chemicals, automotive, metals and equipment, minerals and forest products. The Company’s coal business transports domestic coal, coke and iron ore to electricity-generating power plants, steel manufacturers and industrial plants, as well as export coal to deep-water port facilities.
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