Critical Analysis: Con-way (CNW) versus ArcBest Corporation (ARCB)
Con-way (NYSE: CNW) and ArcBest Corporation (NASDAQ:ARCB) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.
This table compares Con-way and ArcBest Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ArcBest Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Con-way does not pay a dividend. ArcBest Corporation pays out 37.2% of its earnings in the form of a dividend. ArcBest Corporation has increased its dividend for 3 consecutive years.
Earnings & Valuation
This table compares Con-way and ArcBest Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ArcBest Corporation||$2.77 billion||0.28||$146.83 million||$0.86||34.94|
ArcBest Corporation has higher revenue and earnings than Con-way.
Insider & Institutional Ownership
85.8% of ArcBest Corporation shares are owned by institutional investors. 1.0% of ArcBest Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Con-way and ArcBest Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ArcBest Corporation has a consensus price target of $26.75, indicating a potential downside of 10.98%. Given ArcBest Corporation’s higher possible upside, analysts clearly believe ArcBest Corporation is more favorable than Con-way.
ArcBest Corporation beats Con-way on 7 of the 11 factors compared between the two stocks.
Con-way Inc. (Con-way) provides transportation, logistics and supply-chain management services for a range of manufacturing, industrial and retail customers. The Company’s business units operate in regional, inter-regional and transcontinental less-than-truckload and full-truckload freight transportation, multimodal freight brokerage and trailer manufacturing. The Company operates in three segments: Freight, Logistics and Truckload. The Freight segment consists of the operating results of the Con-way Freight business unit. Con-way Freight is a less-than-truckload motor carrier that utilizes a network of freight service centers to provide day-definite regional, inter-regional and transcontinental less-than-truckload freight services. The Logistics segment consists of the operating results of the Menlo Logistics (Menlo) business unit, which develops contract-logistics solutions. The Truckload segment consists of the operating results of the Con-way Truckload business unit.
About ArcBest Corporation
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.
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