Critical Contrast: Rand Logistics (RLOG) and CAI International (CAI)
Rand Logistics (NASDAQ: RLOG) and CAI International (NYSE:CAI) are both small-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Institutional and Insider Ownership
44.0% of Rand Logistics shares are held by institutional investors. Comparatively, 58.4% of CAI International shares are held by institutional investors. 13.1% of Rand Logistics shares are held by insiders. Comparatively, 24.5% of CAI International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations for Rand Logistics and CAI International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CAI International has a consensus price target of $26.00, suggesting a potential downside of 8.45%. Given CAI International’s higher probable upside, analysts clearly believe CAI International is more favorable than Rand Logistics.
Volatility & Risk
Rand Logistics has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, CAI International has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500.
Valuation & Earnings
This table compares Rand Logistics and CAI International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Rand Logistics||$113.98 million||0.04||$21.67 million||($1.22)||-0.22|
|CAI International||$319.94 million||1.70||$63.93 million||$0.68||41.77|
CAI International has higher revenue and earnings than Rand Logistics. Rand Logistics is trading at a lower price-to-earnings ratio than CAI International, indicating that it is currently the more affordable of the two stocks.
This table compares Rand Logistics and CAI International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CAI International beats Rand Logistics on 12 of the 12 factors compared between the two stocks.
Rand Logistics Company Profile
Rand Logistics, Inc. is a shipping company that, through its operating subsidiaries, is engaged in the operation of bulk carriers on the Great Lakes. The Company’s shipping business is operated in Canada by Lower Lakes Towing Ltd. (Lower Lakes Towing) and in the United States by Lower Lakes Transportation Company (Lower Lakes Transportation). The Company transports construction aggregates, salt, grain, coal, iron ore, and other dry bulk commodities for customers in the construction, electric utility, food, and integrated steel industries. Lower Lakes’ fleet consists of approximately six self-unloading bulk carriers and over four conventional bulk carriers in Canada and approximately six self-unloading bulk carriers in the United States, including over three articulated tug and barge units. Lower Lakes Towing owns approximately nine Canadian vessels and Lower Lakes Towing (17) Ltd. (Lower Lakes (17)) owns the tenth Canadian vessel.
CAI International Company Profile
CAI International, Inc. is a transportation finance and logistics company. The Company purchases equipment, primarily intermodal shipping containers and railcars, which it leases to its customers, and also manages equipment for third-party investors. The Company operates through three segments: container leasing, rail leasing and logistics. In operating the Company’s fleet, it leases, re-leases and disposes equipment and contracts for the repair, repositioning and storage of equipment. The Company also provides domestic and international logistics services. The Company leases its container equipment to lessees under long-term leases, short-term leases and finance leases. The Company’s long-term leases have terms of one year or more and specify the number of containers to be leased, the pick-up and drop-off locations.
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