Reviewing Ryder System (R) & Con-way (CNW)
Ryder System (NYSE: R) and Con-way (NYSE:CNW) are both transportation companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Ryder System pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. Con-way does not pay a dividend. Ryder System pays out 44.1% of its earnings in the form of a dividend. Ryder System has increased its dividend for 3 consecutive years and Con-way has increased its dividend for 8 consecutive years.
Institutional & Insider Ownership
89.5% of Ryder System shares are owned by institutional investors. 2.0% of Ryder System 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 and target prices for Ryder System and Con-way, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ryder System currently has a consensus target price of $75.25, indicating a potential downside of 4.87%. Given Ryder System’s higher probable upside, equities analysts clearly believe Ryder System is more favorable than Con-way.
Earnings and Valuation
This table compares Ryder System and Con-way’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ryder System||$6.99 billion||0.60||$1.82 billion||$4.17||18.97|
Ryder System has higher revenue and earnings than Con-way.
This table compares Ryder System and Con-way’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ryder System beats Con-way on 7 of the 11 factors compared between the two stocks.
About Ryder System
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.
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.
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