Macquarie Infrastructure (NYSE: MIC) and Roadrunner Transportation Systems (NYSE:RRTS) are both multi-sector conglomerates companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

80.6% of Macquarie Infrastructure shares are held by institutional investors. Comparatively, 71.8% of Roadrunner Transportation Systems shares are held by institutional investors. 5.9% of Macquarie Infrastructure shares are held by insiders. Comparatively, 25.8% of Roadrunner Transportation Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Macquarie Infrastructure pays an annual dividend of $5.52 per share and has a dividend yield of 7.9%. Roadrunner Transportation Systems does not pay a dividend. Macquarie Infrastructure pays out 255.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macquarie Infrastructure has increased its dividend for 5 consecutive years.

Volatility and Risk

Macquarie Infrastructure has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Roadrunner Transportation Systems has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Macquarie Infrastructure and Roadrunner Transportation Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macquarie Infrastructure 10.12% 5.71% 2.35%
Roadrunner Transportation Systems N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Macquarie Infrastructure and Roadrunner Transportation Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macquarie Infrastructure 0 1 3 0 2.75
Roadrunner Transportation Systems 0 2 1 0 2.33

Macquarie Infrastructure currently has a consensus price target of $89.33, indicating a potential upside of 27.46%. Roadrunner Transportation Systems has a consensus price target of $9.67, indicating a potential upside of 2.62%. Given Macquarie Infrastructure’s stronger consensus rating and higher possible upside, equities analysts plainly believe Macquarie Infrastructure is more favorable than Roadrunner Transportation Systems.

Earnings & Valuation

This table compares Macquarie Infrastructure and Roadrunner Transportation Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macquarie Infrastructure $1.75 billion 3.31 $604.97 million $2.16 32.45
Roadrunner Transportation Systems $1.97 billion 0.18 $100.85 million $0.66 14.27

Macquarie Infrastructure has higher revenue, but lower earnings than Roadrunner Transportation Systems. Roadrunner Transportation Systems is trading at a lower price-to-earnings ratio than Macquarie Infrastructure, indicating that it is currently the more affordable of the two stocks.

Summary

Macquarie Infrastructure beats Roadrunner Transportation Systems on 14 of the 17 factors compared between the two stocks.

About Macquarie Infrastructure

Macquarie Infrastructure Corporation owns and operates a group of businesses that provide services, such as bulk liquid terminalling and handling services. The Company operates through four segments: International-Matex Tank Terminals (IMTT), Atlantic Aviation, Contracted Power (CP) and MIC Hawaii. Its group of businesses also provides services, such as aircraft fueling, CP generation and utility gas services. Its group of businesses provides services to businesses, government agencies and individuals in the United States. IMTT segment provides bulk liquid terminal services in the United States. As of December 31, 2016, Atlantic Aviation operated Fixed based operations (FBOs) at 69 airports in the United States. The businesses in its CP segment sell electricity to off-takers, pursuant to multi-year contracts. MIC Hawaii segment consists of Hawaii Gas and several smaller businesses. Hawaii Gas consists of a gas utility and a liquefied petroleum gas (LPG) distribution business.

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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