Echo Global Logistics (ECHO) vs. Roadrunner Transportation Systems (RRTS) Financial Review
Roadrunner Transportation Systems (NYSE: RRTS) and Echo Global Logistics (NASDAQ:ECHO) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitabiliy, valuation, analyst recommendations, risk and earnings.
Earnings and Valuation
This table compares Roadrunner Transportation Systems and Echo Global Logistics’ 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||10.45|
|Echo Global Logistics||$1.73 billion||0.34||$34.76 million||($0.05)||-407.92|
Roadrunner Transportation Systems has higher revenue and earnings than Echo Global Logistics. Echo Global Logistics is trading at a lower price-to-earnings ratio than Roadrunner Transportation Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Roadrunner Transportation Systems has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Echo Global Logistics has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.
Institutional and Insider Ownership
74.8% of Roadrunner Transportation Systems shares are owned by institutional investors. Comparatively, 90.1% of Echo Global Logistics shares are owned by institutional investors. 25.8% of Roadrunner Transportation Systems shares are owned by insiders. Comparatively, 8.1% of Echo Global Logistics shares are owned by 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.
This is a summary of recent recommendations and price targets for Roadrunner Transportation Systems and Echo Global Logistics, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Roadrunner Transportation Systems||1||2||1||0||2.00|
|Echo Global Logistics||0||0||5||0||3.00|
Roadrunner Transportation Systems presently has a consensus price target of $9.67, indicating a potential upside of 40.10%. Echo Global Logistics has a consensus price target of $28.80, indicating a potential upside of 41.18%. Given Echo Global Logistics’ stronger consensus rating and higher probable upside, analysts plainly believe Echo Global Logistics is more favorable than Roadrunner Transportation Systems.
This table compares Roadrunner Transportation Systems and Echo Global Logistics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Roadrunner Transportation Systems||1.26%||4.20%||1.96%|
|Echo Global Logistics||-0.09%||3.65%||1.72%|
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 Echo Global Logistics
Echo Global Logistics, Inc. is a provider of technology-enabled transportation and supply chain management solutions. The Company utilizes a technology platform to compile and analyze data from its multi-modal network of transportation providers to facilitate its transportation and logistics services. The Company focuses primarily on arranging transportation by truckload (TL) and less than truckload (LTL) carriers. It also offers intermodal (which involves moving a shipment by rail and truck), small parcel, domestic air, expedited and international transportation services. The Company’s core logistics services include rate negotiation, shipment execution and tracking, carrier selection and management, routing compliance freight bill payment and audit, payment and performance management and reporting functions.
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