Roadrunner Transportation Systems (RRTS) and Macquarie Infrastructure (MIC) Critical Analysis
Roadrunner Transportation Systems (NASDAQ: RRTS) and Macquarie Infrastructure (NYSE:MIC) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
This is a breakdown of current recommendations and price targets for Roadrunner Transportation Systems and Macquarie Infrastructure, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Roadrunner Transportation Systems||0||2||1||0||2.33|
Roadrunner Transportation Systems currently has a consensus target price of $9.67, indicating a potential upside of 1.97%. Macquarie Infrastructure has a consensus target price of $89.33, indicating a potential upside of 30.15%. Given Macquarie Infrastructure’s stronger consensus rating and higher probable upside, analysts plainly believe Macquarie Infrastructure is more favorable than Roadrunner Transportation Systems.
Insider and Institutional Ownership
80.6% of Macquarie Infrastructure shares are held by institutional investors. 5.9% of Macquarie Infrastructure shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Roadrunner Transportation Systems and Macquarie Infrastructure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Roadrunner Transportation Systems||1.49%||5.11%||2.40%|
Earnings and Valuation
This table compares Roadrunner Transportation Systems and Macquarie Infrastructure’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Roadrunner Transportation Systems||$1.97 billion||0.18||$100.85 million||N/A||N/A|
|Macquarie Infrastructure||$1.75 billion||3.24||$604.97 million||$2.16||31.78|
Macquarie Infrastructure has higher revenue, but lower earnings than Roadrunner Transportation Systems.
Macquarie Infrastructure pays an annual dividend of $5.52 per share and has a dividend yield of 8.0%. 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.
Macquarie Infrastructure beats Roadrunner Transportation Systems on 12 of the 15 factors compared between the two stocks.
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.
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.
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