Analyzing C.H. Robinson Worldwide (CHRW) and ArcBest Corporation (ARCB)
C.H. Robinson Worldwide (NASDAQ: CHRW) and ArcBest Corporation (NASDAQ:ARCB) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
Volatility & Risk
C.H. Robinson Worldwide has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, ArcBest Corporation has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.
This table compares C.H. Robinson Worldwide and ArcBest Corporation’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%|
Insider and Institutional Ownership
90.0% of C.H. Robinson Worldwide shares are held by institutional investors. Comparatively, 84.9% of ArcBest Corporation shares are held by institutional investors. 0.9% of C.H. Robinson Worldwide shares are held by company insiders. Comparatively, 1.0% of ArcBest Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
C.H. Robinson Worldwide pays an annual dividend of $1.80 per share and has a dividend yield of 2.3%. ArcBest Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. C.H. Robinson Worldwide pays out 52.9% of its earnings in the form of a dividend. ArcBest Corporation pays out 37.2% 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. C.H. Robinson Worldwide has raised its dividend for 10 consecutive years. C.H. Robinson Worldwide is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares C.H. Robinson Worldwide and ArcBest Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|C.H. Robinson Worldwide||$13.90 billion||0.78||$848.19 million||$3.40||22.74|
|ArcBest Corporation||$2.77 billion||0.29||$146.83 million||$0.86||35.87|
C.H. Robinson Worldwide has higher revenue and earnings than ArcBest Corporation. C.H. Robinson Worldwide is trading at a lower price-to-earnings ratio than ArcBest Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for C.H. Robinson Worldwide and ArcBest Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|C.H. Robinson Worldwide||3||6||5||0||2.14|
C.H. Robinson Worldwide presently has a consensus price target of $75.00, indicating a potential downside of 3.01%. ArcBest Corporation has a consensus price target of $27.40, indicating a potential downside of 11.18%. Given C.H. Robinson Worldwide’s stronger consensus rating and higher possible upside, equities analysts plainly believe C.H. Robinson Worldwide is more favorable than ArcBest Corporation.
C.H. Robinson Worldwide beats ArcBest Corporation on 13 of the 17 factors compared between the two stocks.
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.
ArcBest Corporation Company Profile
ArcBest Corporation is a holding company of businesses providing integrated logistics solutions. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. Its ArcBest segment includes truckload, expedite, international, warehousing, freight transportation, management services and moving services. Its FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles to customers in the United States and Canada through a network of third-party service providers.
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