Financial Comparison: Old Dominion Freight Line (ODFL) vs. USA Truck (USAK)

USA Truck (NASDAQ: USAK) and Old Dominion Freight Line (NASDAQ:ODFL) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Dividends

Old Dominion Freight Line pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. USA Truck does not pay a dividend. Old Dominion Freight Line pays out 10.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares USA Truck and Old Dominion Freight Line’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
USA Truck $417.62 million 0.18 $18.65 million ($1.53) -6.14
Old Dominion Freight Line $3.12 billion 2.50 $718.76 million $3.85 24.62

Old Dominion Freight Line has higher revenue and earnings than USA Truck. USA Truck is trading at a lower price-to-earnings ratio than Old Dominion Freight Line, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

65.9% of USA Truck shares are owned by institutional investors. Comparatively, 75.1% of Old Dominion Freight Line shares are owned by institutional investors. 3.5% of USA Truck shares are owned by company insiders. Comparatively, 12.0% of Old Dominion Freight Line shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

USA Truck has a beta of 2.52, meaning that its share price is 152% more volatile than the S&P 500. Comparatively, Old Dominion Freight Line has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares USA Truck and Old Dominion Freight Line’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USA Truck -2.94% -20.68% -4.09%
Old Dominion Freight Line 10.19% 16.87% 11.61%

Analyst Recommendations

This is a summary of recent recommendations for USA Truck and Old Dominion Freight Line, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USA Truck 0 2 1 0 2.33
Old Dominion Freight Line 0 5 3 0 2.38

USA Truck currently has a consensus price target of $8.75, indicating a potential downside of 6.91%. Old Dominion Freight Line has a consensus price target of $96.13, indicating a potential upside of 1.41%. Given Old Dominion Freight Line’s stronger consensus rating and higher possible upside, analysts clearly believe Old Dominion Freight Line is more favorable than USA Truck.

Summary

Old Dominion Freight Line beats USA Truck on 13 of the 15 factors compared between the two stocks.

USA Truck Company Profile

USA Truck, Inc. is a truckload carrier providing transportation of general commodities throughout the continental United States and into and out of portions of Mexico and Canada. The Company operates through two segments: Trucking and Strategic Capacity Solutions (SCS). The Trucking segment consists of truckload and dedicated freight services. The SCS segment consists of freight brokerage and rail intermodal services. The Company transports full dry van trailer loads of freight from origin to destination without intermediate stops or handling. The Company offers a range of truckload and logistics services to a customer base that spans a range of industries. The Company’s fleet of approximately 1,832 tractors consists of 1,568 company tractors and 264 independent contractor tractors. The Company owns approximately 6,200 trailers. The Company also transports general commodities into and out of Mexico by allowing through-trailer service from its terminal in Laredo, Texas.

Old Dominion Freight Line Company Profile

Old Dominion Freight Line, Inc. is a union-free motor carrier providing regional, inter-regional and national less-than-truckload (LTL) services. The Company’s LTL services include ground and air expedited transportation for time-sensitive shipments, consumer household pickup and delivery and freight delivery services throughout North America. In addition to its LTL services, the Company offers a range of other value-added services that include container drayage, truckload brokerage, supply chain consulting and warehousing. As of December 31, 2016, the Company operated 226 service center locations, of which it owned 182 and leased 44. As of December 31, 2016, its network included 10 breakbulk facilities located in Rialto, California; Atlanta, Georgia; Columbus, Ohio; Indianapolis, Indiana; Greensboro, North Carolina; Harrisburg, Pennsylvania; Memphis and Morristown, Tennessee; Dallas, Texas, and Salt Lake City, Utah. As of December 31, 2016, the Company owned 7,994 tractors.

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