Critical Comparison: CSX Corporation (CSX) & C.H. Robinson Worldwide (CHRW)
CSX Corporation (NASDAQ: CSX) and C.H. Robinson Worldwide (NASDAQ:CHRW) are both large-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
CSX Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 1.5%. C.H. Robinson Worldwide pays an annual dividend of $1.80 per share and has a dividend yield of 2.3%. CSX Corporation pays out 41.9% of its earnings in the form of a dividend. C.H. Robinson Worldwide pays out 52.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CSX Corporation has raised its dividend for 10 consecutive years.
Insider and Institutional Ownership
69.8% of CSX Corporation shares are owned by institutional investors. Comparatively, 90.1% of C.H. Robinson Worldwide shares are owned by institutional investors. 4.8% of CSX Corporation shares are owned by company insiders. Comparatively, 0.9% of C.H. Robinson Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares CSX Corporation and C.H. Robinson Worldwide’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CSX Corporation||$11.55 billion||4.24||$5.20 billion||$1.91||28.05|
|C.H. Robinson Worldwide||$13.90 billion||0.78||$848.19 million||$3.40||22.70|
CSX Corporation has higher revenue, but lower earnings than C.H. Robinson Worldwide. C.H. Robinson Worldwide is trading at a lower price-to-earnings ratio than CSX Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CSX Corporation has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.
This table compares CSX Corporation and C.H. Robinson Worldwide’s 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%|
This is a summary of current ratings for CSX Corporation and C.H. Robinson Worldwide, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|C.H. Robinson Worldwide||3||7||4||0||2.07|
CSX Corporation presently has a consensus target price of $54.41, suggesting a potential upside of 1.55%. C.H. Robinson Worldwide has a consensus target price of $73.64, suggesting a potential downside of 4.58%. Given CSX Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe CSX Corporation is more favorable than C.H. Robinson Worldwide.
CSX Corporation beats C.H. Robinson Worldwide on 11 of the 17 factors compared between the two stocks.
CSX Corporation Company Profile
CSX Corporation is a transportation company. The Company provides rail-based freight transportation services, including traditional rail service and transport of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. The Company categorizes its products into three primary lines of business: merchandise, intermodal and coal. The Company’s intermodal business links customers to railroads through trucks and terminals. The Company’s merchandise business consists of shipments in markets, such as agricultural and food products, fertilizers, chemicals, automotive, metals and equipment, minerals and forest products. The Company’s coal business transports domestic coal, coke and iron ore to electricity-generating power plants, steel manufacturers and industrial plants, as well as export coal to deep-water port facilities.
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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