Critical Analysis: C.H. Robinson Worldwide (CHRW) vs. Its Competitors
C.H. Robinson Worldwide (NASDAQ: CHRW) is one of 28 public companies in the “Ground Freight & Logistics” industry, but how does it weigh in compared to its peers? We will compare C.H. Robinson Worldwide to related companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.
C.H. Robinson Worldwide pays an annual dividend of $1.80 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. As a group, “Ground Freight & Logistics” companies pay a dividend yield of 1.6% and pay out 36.3% of their earnings in the form of a dividend. C.H. Robinson Worldwide has raised its dividend for 10 consecutive years.
This table compares C.H. Robinson Worldwide and its peers’ 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%|
|C.H. Robinson Worldwide Competitors||10.86%||15.03%||5.33%|
This is a breakdown of recent ratings and recommmendations for C.H. Robinson Worldwide and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|C.H. Robinson Worldwide||3||7||4||0||2.07|
|C.H. Robinson Worldwide Competitors||183||1296||1799||70||2.52|
C.H. Robinson Worldwide presently has a consensus target price of $73.64, suggesting a potential downside of 4.58%. As a group, “Ground Freight & Logistics” companies have a potential upside of 9.81%. Given C.H. Robinson Worldwide’s peers stronger consensus rating and higher probable upside, analysts clearly believe C.H. Robinson Worldwide has less favorable growth aspects than its peers.
Insider & Institutional Ownership
90.1% of C.H. Robinson Worldwide shares are held by institutional investors. Comparatively, 71.3% of shares of all “Ground Freight & Logistics” companies are held by institutional investors. 0.9% of C.H. Robinson Worldwide shares are held by company insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
C.H. Robinson Worldwide has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide’s peers have a beta of 1.38, suggesting that their average share price is 38% more volatile than the S&P 500.
Valuation and Earnings
This table compares C.H. Robinson Worldwide and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|C.H. Robinson Worldwide||$13.90 billion||$848.19 million||22.70|
|C.H. Robinson Worldwide Competitors||$5.92 billion||$1.74 billion||-4.12|
C.H. Robinson Worldwide has higher revenue, but lower earnings than its peers. C.H. Robinson Worldwide is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
C.H. Robinson Worldwide peers beat C.H. Robinson Worldwide on 9 of the 15 factors compared.
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.
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