Landstar System (NASDAQ: LSTR) and Universal Logistics Holdings (NYSE:ULH) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Landstar System and Universal Logistics Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Landstar System 2 4 3 0 2.11
Universal Logistics Holdings 0 1 1 0 2.50

Landstar System currently has a consensus price target of $86.14, indicating a potential downside of 8.46%. Universal Logistics Holdings has a consensus price target of $17.00, indicating a potential downside of 6.34%. Given Universal Logistics Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Universal Logistics Holdings is more favorable than Landstar System.

Institutional and Insider Ownership

97.0% of Landstar System shares are held by institutional investors. 1.0% of Landstar System shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Landstar System and Universal Logistics Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Landstar System 4.37% 26.11% 13.28%
Universal Logistics Holdings 0.90% 7.26% 1.86%

Valuation & Earnings

This table compares Landstar System and Universal Logistics Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Landstar System $3.33 billion 1.19 $271.70 million $3.46 27.20
Universal Logistics Holdings $1.13 billion 0.46 $72.35 million N/A N/A

Landstar System has higher revenue and earnings than Universal Logistics Holdings.

Dividends

Landstar System pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Universal Logistics Holdings does not pay a dividend. Landstar System pays out 11.6% of its earnings in the form of a dividend.

Summary

Landstar System beats Universal Logistics Holdings on 10 of the 14 factors compared between the two stocks.

Landstar System Company Profile

Landstar System, Inc. (Landstar) is an asset-light provider of integrated transportation management solutions. The Company offers services to its customers across multiple transportation modes, with the ability to arrange for individual shipments of freight to enterprise solutions to manage customer’s transportation needs. It operates in two segments: the Transportation Logistics segment and the Insurance segment. The Transportation Logistics segment provides a range of integrated transportation management solutions. Transportation services offered by it include truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul or specialized, the United States-Canada and the United States-Mexico cross-border, project cargo and customs brokerage. The insurance segment consists of Signature Insurance Company, which is an offshore insurance subsidiary, and Risk Management Claim Services, Inc.

Universal Logistics Holdings Company Profile

Universal Logistics Holdings, Inc., formerly Universal Truckload Services, Inc., is an asset-light provider of customized transportation and logistics solutions across the United States, Mexico, Canada and Colombia. The Company operates through two segments: the transportation segment and the logistics segment. The Company’s operations aggregated in the transportation segment are associated with individual freight shipments coordinated by its agents, company-managed terminals and specialized services operations. The Company’s operations aggregated in the logistics segment deliver value-added services and transportation services to specific customers. Its other operating segments consist of the Company’s subsidiaries that provide support services to other subsidiaries and to owner-operators, including shop maintenance and equipment leasing. The Company groups its services into three service categories: transportation, value-added and intermodal support.

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