Head to Head Comparison: C.H. Robinson Worldwide (CHRW) and Ryder System (R)
C.H. Robinson Worldwide (NASDAQ: CHRW) and Ryder System (NYSE:R) are both mid-cap transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.
Insider & Institutional Ownership
90.1% of C.H. Robinson Worldwide shares are held by institutional investors. Comparatively, 89.5% of Ryder System shares are held by institutional investors. 0.9% of C.H. Robinson Worldwide shares are held by insiders. Comparatively, 2.0% of Ryder System shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares C.H. Robinson Worldwide and Ryder System’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|C.H. Robinson Worldwide||3.49%||37.41%||12.84%|
Volatility & Risk
C.H. Robinson Worldwide has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Ryder System has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.
This is a breakdown of current recommendations for C.H. Robinson Worldwide and Ryder System, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|C.H. Robinson Worldwide||3||6||4||0||2.08|
C.H. Robinson Worldwide presently has a consensus target price of $71.38, indicating a potential downside of 3.19%. Ryder System has a consensus target price of $75.25, indicating a potential downside of 4.87%. Given C.H. Robinson Worldwide’s higher probable upside, research analysts plainly believe C.H. Robinson Worldwide is more favorable than Ryder System.
C.H. Robinson Worldwide pays an annual dividend of $1.80 per share and has a dividend yield of 2.4%. Ryder System pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. C.H. Robinson Worldwide pays out 52.9% of its earnings in the form of a dividend. Ryder System pays out 44.1% 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. C.H. Robinson Worldwide has increased its dividend for 8 consecutive years and Ryder System has increased its dividend for 10 consecutive years.
Valuation & Earnings
This table compares C.H. Robinson Worldwide and Ryder System’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|C.H. Robinson Worldwide||$13.90 billion||0.74||$848.19 million||$3.40||21.69|
|Ryder System||$6.99 billion||0.60||$1.82 billion||$4.17||18.97|
Ryder System has higher revenue, but lower earnings than C.H. Robinson Worldwide. Ryder System is trading at a lower price-to-earnings ratio than C.H. Robinson Worldwide, indicating that it is currently the more affordable of the two stocks.
C.H. Robinson Worldwide beats Ryder System on 10 of the 17 factors compared between the two stocks.
C.H. Robinson Worldwide Company Profile
C.H. Robinson Worldwide, Inc. is a provider of transportation services and logistics solutions through a network of offices operating in North America, Europe, Asia, Australia, New Zealand and South America. The Company’s segments include North American Surface Transportation (NAST), Global Forwarding, Robinson Fresh, and All Other and Corporate. The NAST segment provides freight transportation services across North America through a network of offices in the United States, Canada and Mexico. The primary services provided by Global Forwarding segment include ocean freight services, air freight services, and customs brokerage. The Robinson Fresh segment provides sourcing under the trade name Robinson Fresh. The All Other and Corporate segment primarily consists of Managed Services and Other Surface Transportation outside of North America. It develops global transportation and distribution networks to provide transportation and supply chain services throughout the world.
Ryder System Company Profile
Ryder System, Inc. is engaged in offering transportation and supply chain management solutions. The Company operates through three segments: Fleet Management Solutions (FMS), which provides leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the United States, Canada and the United Kingdom; Dedicated Transportation Solutions (DTS), which provides vehicles and drivers as part of a dedicated transportation solution in the United States, and Supply Chain Solutions (SCS), which provides supply chain solutions, including distribution and transportation services in North America and Asia. Through its FMS business, the Company provides its customers with various fleet solutions. In addition, it provides its customers to purchase a selection of used trucks, tractors and trailers through its used vehicle sales program. Its customer base includes enterprises operating in various industries.
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