Analyzing Echo Global Logistics (ECHO) & Roadrunner Transportation Systems (RRTS)
Echo Global Logistics (NASDAQ: ECHO) and Roadrunner Transportation Systems (NASDAQ:RRTS) are both small-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
This table compares Echo Global Logistics and Roadrunner Transportation Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Echo Global Logistics||-0.21%||3.22%||1.47%|
|Roadrunner Transportation Systems||1.49%||5.11%||2.40%|
Institutional and Insider Ownership
87.5% of Echo Global Logistics shares are owned by institutional investors. 8.1% of Echo Global Logistics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Echo Global Logistics and Roadrunner Transportation Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Echo Global Logistics||$1.75 billion||0.31||$31.70 million||($0.13)||-146.53|
|Roadrunner Transportation Systems||$1.97 billion||0.18||$100.85 million||N/A||N/A|
Roadrunner Transportation Systems has higher revenue and earnings than Echo Global Logistics.
This is a summary of recent ratings and price targets for Echo Global Logistics and Roadrunner Transportation Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Echo Global Logistics||0||3||5||0||2.63|
|Roadrunner Transportation Systems||0||2||1||0||2.33|
Echo Global Logistics currently has a consensus target price of $20.29, suggesting a potential upside of 6.49%. Roadrunner Transportation Systems has a consensus target price of $9.67, suggesting a potential upside of 4.05%. Given Echo Global Logistics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Echo Global Logistics is more favorable than Roadrunner Transportation Systems.
Echo Global Logistics beats Roadrunner Transportation Systems on 7 of the 12 factors compared between the two stocks.
About Echo Global Logistics
Echo Global Logistics, Inc. is a provider of technology-enabled transportation and supply chain management solutions. The Company utilizes a technology platform to compile and analyze data from its multi-modal network of transportation providers to facilitate its transportation and logistics services. The Company focuses primarily on arranging transportation by truckload (TL) and less than truckload (LTL) carriers. It also offers intermodal (which involves moving a shipment by rail and truck), small parcel, domestic air, expedited and international transportation services. The Company’s core logistics services include rate negotiation, shipment execution and tracking, carrier selection and management, routing compliance freight bill payment and audit, payment and performance management and reporting functions.
About Roadrunner Transportation Systems
Roadrunner Transportation Systems, Inc. (RRTS) is an asset-light transportation and logistics service provider. The Company offers a suite of global supply chain solutions, including truckload logistics (TL), customized and expedited less-than-truckload (LTL), intermodal solutions (transporting a shipment by over one mode, primarily through rail and truck), freight consolidation, inventory management, expedited services, air freight, international freight forwarding, customs brokerage and transportation management solutions. The Company operates through three segments: Truckload Logistics, Less-than-Truckload and Global Solutions. The Company utilizes a third-party network of transportation providers, consisting of independent contractors (ICs) and purchased power providers, to serve a diverse customer base. It primarily focuses on small to mid-size shippers.
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