Head-To-Head Survey: YRC Worldwide (YRCW) & Ryder System (R)
Ryder System (NYSE: R) and YRC Worldwide (NASDAQ:YRCW) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.
This table compares Ryder System and YRC Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
89.5% of Ryder System shares are held by institutional investors. Comparatively, 83.3% of YRC Worldwide shares are held by institutional investors. 2.0% of Ryder System shares are held by company insiders. Comparatively, 3.7% of YRC Worldwide shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Ryder System and YRC Worldwide’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ryder System||$6.99 billion||0.60||$1.82 billion||$4.17||19.06|
|YRC Worldwide||$4.80 billion||0.09||$254.10 million||($0.02)||-631.68|
Ryder System has higher revenue and earnings than YRC Worldwide. YRC Worldwide is trading at a lower price-to-earnings ratio than Ryder System, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Ryder System has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, YRC Worldwide has a beta of 3.77, meaning that its stock price is 277% more volatile than the S&P 500.
Ryder System pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. YRC Worldwide does not pay a dividend. Ryder System pays out 44.1% of its earnings in the form of a dividend. YRC Worldwide has raised its dividend for 8 consecutive years.
This is a summary of current recommendations and price targets for Ryder System and YRC Worldwide, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ryder System currently has a consensus price target of $75.25, indicating a potential downside of 5.30%. YRC Worldwide has a consensus price target of $16.33, indicating a potential upside of 29.22%. Given YRC Worldwide’s stronger consensus rating and higher possible upside, analysts plainly believe YRC Worldwide is more favorable than Ryder System.
Ryder System beats YRC Worldwide on 9 of the 16 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.
YRC Worldwide Company Profile
YRC Worldwide Inc. is a holding company. The Company, through its subsidiaries, offers its customers a range of transportation services. The Company operates through two segments: YRC Freight and Regional Transportation. The Company has less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. YRC Freight segment offers a range of services for the transportation of industrial, commercial and retail goods in national, regional and international markets, primarily through the operation of owned or leased equipment in its North American ground distribution network. It provides transportation services for various categories of goods, which include apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal and metal products. The Company’s Regional Transportation segment consists of USF Holland LLC (Holland), New Penn Motor Express, LLC (New Penn) and USF Reddaway Inc. (Reddaway).
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