Quality Distribution (NASDAQ: QLTY) and Kansas City Southern (NYSE:KSU) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Dividends

Kansas City Southern pays an annual dividend of $1.44 per share and has a dividend yield of 1.3%. Quality Distribution does not pay a dividend. Kansas City Southern pays out 28.9% of its earnings in the form of a dividend. Kansas City Southern has raised its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Quality Distribution and Kansas City Southern’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quality Distribution N/A N/A N/A N/A N/A
Kansas City Southern $2.47 billion 4.58 $1.18 billion $4.98 21.54

Kansas City Southern has higher revenue and earnings than Quality Distribution.

Analyst Ratings

This is a summary of current ratings and price targets for Quality Distribution and Kansas City Southern, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quality Distribution 0 0 0 0 N/A
Kansas City Southern 0 10 7 0 2.41

Kansas City Southern has a consensus price target of $103.92, indicating a potential downside of 3.11%. Given Kansas City Southern’s higher probable upside, analysts clearly believe Kansas City Southern is more favorable than Quality Distribution.

Institutional & Insider Ownership

84.5% of Kansas City Southern shares are owned by institutional investors. 1.0% of Kansas City Southern shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Quality Distribution and Kansas City Southern’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quality Distribution 0.95% N/A 2.09%
Kansas City Southern 21.52% 11.40% 5.68%

Summary

Kansas City Southern beats Quality Distribution on 10 of the 11 factors compared between the two stocks.

Quality Distribution Company Profile

Quality Distribution Inc. is a United States-based provider of bulk transportation and logistics services. The Company also provides transportation and delivery services. The Company offers services, such as chemical bulk transportation, logistics, container and depot, intermodal, leasing and risk services. Its container and depot services for intermodal equipment include repair, maintenance and cleaning, and redistribution. Its intermodal services include tracking solutions, solutions regarding capacity, pre-clearing for shipments moving across borders, and management and control over every shipping segment from departure to delivery. It offers risk management consulting that covers insurance policy reviews, insurance or self-insurance analysis and brokerage relationship studies. It also offers audit services, electronic or on-site. It serves industries, including chemical, unconventional oil and gas, bulk liquid and food grade liquid.

Kansas City Southern Company Profile

Kansas City Southern (KCS) is a holding company. The Company has domestic and international rail operations in North America that are focused on the north/south freight corridor connecting commercial and industrial markets in the central United States with industrial cities in Mexico. The Company’s subsidiaries include The Kansas City Southern Railway Company (KCSR) and Kansas City Southern de Mexico, S.A. de C.V. (KCSM). KCSR serves a 10-state region in the midwest and southeast regions of the United States and has the north/south rail route between Kansas City, Missouri and various ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas. KCSM operates a corridor of the Mexican railroad system. KCSM’s rail lines provide rail access to the United States and Mexico border crossing at Nuevo Laredo, Tamaulipas. KCSM also provides rail access to the Port of Lazaro Cardenas on the Pacific Ocean.

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