Head-To-Head Analysis: Ryder System (R) and Genesee & Wyoming (GWR)
Ryder System (NYSE: R) and Genesee & Wyoming (NYSE:GWR) are both mid-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitabiliy.
Risk and Volatility
Ryder System has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Genesee & Wyoming has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500.
Institutional & Insider Ownership
92.9% of Ryder System shares are owned by institutional investors. Comparatively, 95.9% of Genesee & Wyoming shares are owned by institutional investors. 2.0% of Ryder System shares are owned by insiders. Comparatively, 3.8% of Genesee & Wyoming shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Ryder System and Genesee & Wyoming’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Genesee & Wyoming||6.64%||6.32%||2.63%|
Ryder System pays an annual dividend of $1.76 per share and has a dividend yield of 2.4%. Genesee & Wyoming does not pay a dividend. Ryder System pays out 42.2% of its earnings in the form of a dividend. Ryder System has raised its dividend for 8 consecutive years.
This is a breakdown of recent recommendations and price targets for Ryder System and Genesee & Wyoming, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Genesee & Wyoming||0||5||3||0||2.38|
Ryder System currently has a consensus target price of $74.33, indicating a potential upside of 1.38%. Genesee & Wyoming has a consensus target price of $75.60, indicating a potential upside of 12.68%. Given Genesee & Wyoming’s stronger consensus rating and higher probable upside, analysts clearly believe Genesee & Wyoming is more favorable than Ryder System.
Valuation & Earnings
This table compares Ryder System and Genesee & Wyoming’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ryder System||$6.99 billion||0.56||$1.82 billion||$4.17||17.58|
|Genesee & Wyoming||$2.08 billion||1.98||$609.92 million||$2.29||29.30|
Ryder System has higher revenue and earnings than Genesee & Wyoming. Ryder System is trading at a lower price-to-earnings ratio than Genesee & Wyoming, indicating that it is currently the more affordable of the two stocks.
Genesee & Wyoming beats Ryder System on 11 of the 17 factors compared between the two stocks.
Ryder System Company Profile
Ryder System, Inc. is engaged in offering transportation and supply chain management solutions. The Company operates through three segments: Fleet Management Solutions (FMS), which provides leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the United States, Canada and the United Kingdom; Dedicated Transportation Solutions (DTS), which provides vehicles and drivers as part of a dedicated transportation solution in the United States, and Supply Chain Solutions (SCS), which provides supply chain solutions, including distribution and transportation services in North America and Asia. Through its FMS business, the Company provides its customers with various fleet solutions. In addition, it provides its customers to purchase a selection of used trucks, tractors and trailers through its used vehicle sales program. Its customer base includes enterprises operating in various industries.
Genesee & Wyoming Company Profile
Genesee & Wyoming Inc. owns and operates freight railroads across the world. As of December 31, 2016, the Company owned or leased 122 freight railroads worldwide that are organized in 10 operating regions. The Company operates through three segments, which include North American Operations, Australian Operations and U.K./European Operations. In North America, the Company has operations in eight regions, such as Central, Coastal (which includes industrial switching and port operations), Midwest, Mountain West (which includes industrial switching operations), Northeast, Pacific, Southern and Canada. Outside the United States, the Company has operations in two regions: Australia and the United Kingdom/Europe (which consists of operations in the United Kingdom, Belgium, Germany, the Netherlands and Poland, as well as the provision of management and technical support through Freightliner to Saudi Arabia Railway Company).
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