Genesee & Wyoming (GWR) vs. ArcBest Corporation (ARCB) Critical Comparison
ArcBest Corporation (NASDAQ: ARCB) and Genesee & Wyoming (NYSE:GWR) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitabiliy, valuation, earnings and analyst recommendations.
This table compares ArcBest Corporation and Genesee & Wyoming’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Genesee & Wyoming||6.89%||6.61%||2.71%|
Insider and Institutional Ownership
88.2% of ArcBest Corporation shares are owned by institutional investors. Comparatively, 97.2% of Genesee & Wyoming shares are owned by institutional investors. 1.0% of ArcBest Corporation shares are owned by insiders. Comparatively, 3.8% of Genesee & Wyoming shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings for ArcBest Corporation and Genesee & Wyoming, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Genesee & Wyoming||0||4||3||0||2.43|
ArcBest Corporation currently has a consensus target price of $24.00, indicating a potential upside of 20.60%. Genesee & Wyoming has a consensus target price of $75.60, indicating a potential upside of 12.55%. Given ArcBest Corporation’s higher possible upside, analysts plainly believe ArcBest Corporation is more favorable than Genesee & Wyoming.
Valuation and Earnings
This table compares ArcBest Corporation and Genesee & Wyoming’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ArcBest Corporation||$2.73 billion||0.19||$136.29 million||$0.65||30.62|
|Genesee & Wyoming||$2.04 billion||2.05||$590.34 million||$2.38||28.22|
Genesee & Wyoming has higher revenue, but lower earnings than ArcBest Corporation. Genesee & Wyoming is trading at a lower price-to-earnings ratio than ArcBest Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
ArcBest Corporation has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Genesee & Wyoming has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.
ArcBest Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 1.6%. Genesee & Wyoming does not pay a dividend. ArcBest Corporation pays out 49.2% of its earnings in the form of a dividend.
Genesee & Wyoming beats ArcBest Corporation on 12 of the 16 factors compared between the two stocks.
ArcBest Corporation 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.
Genesee & Wyoming Company Profile
Genesee & Wyoming Inc. owns and operates freight railroads across the world. As of December 31, 2016, the Company owned or leased 122 freight railroads worldwide that are organized in 10 operating regions. The Company operates through three segments, which include North American Operations, Australian Operations and U.K./European Operations. In North America, the Company has operations in eight regions, such as Central, Coastal (which includes industrial switching and port operations), Midwest, Mountain West (which includes industrial switching operations), Northeast, Pacific, Southern and Canada. Outside the United States, the Company has operations in two regions: Australia and the United Kingdom/Europe (which consists of operations in the United Kingdom, Belgium, Germany, the Netherlands and Poland, as well as the provision of management and technical support through Freightliner to Saudi Arabia Railway Company).
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