DHL Group (OTCMKTS:DHLGY) & Kuehne & Nagel International (OTCMKTS:KHNGY) Critical Review

Kuehne & Nagel International (OTCMKTS:KHNGY) and DHL Group (OTCMKTS:DHLGY) are both large-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Volatility & Risk

Kuehne & Nagel International has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, DHL Group has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares Kuehne & Nagel International and DHL Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kuehne & Nagel International	4.01%	40.03%	8.48%
DHL Group	4.24%	15.44%	5.07%

Dividends

Kuehne & Nagel International pays an annual dividend of $1.24 per share and has a dividend yield of 2.7%. DHL Group pays an annual dividend of $1.46 per share and has a dividend yield of 2.6%. Kuehne & Nagel International pays out 61.7% of its earnings in the form of a dividend. DHL Group pays out 42.6% 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.

Valuation & Earnings

This table compares Kuehne & Nagel International and DHL Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuehne & Nagel International	$28.18 billion	0.98	$1.34 billion	$2.01	22.82
DHL Group	$91.11 billion	0.68	$3.61 billion	$3.43	16.58

DHL Group has higher revenue and earnings than Kuehne & Nagel International. DHL Group is trading at a lower price-to-earnings ratio than Kuehne & Nagel International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Kuehne & Nagel International and DHL Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuehne & Nagel International	2	3	1	0	1.83
DHL Group	0	6	1	1	2.38

Summary

DHL Group beats Kuehne & Nagel International on 8 of the 13 factors compared between the two stocks.

About Kuehne & Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.

About DHL Group

Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.