Analyzing Roadrunner Transportation Systems (RRTS) and Macquarie Infrastructure (MIC)
Roadrunner Transportation Systems (NYSE: RRTS) and Macquarie Infrastructure (NYSE:MIC) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.
Insider and Institutional Ownership
72.0% of Roadrunner Transportation Systems shares are held by institutional investors. Comparatively, 80.5% of Macquarie Infrastructure shares are held by institutional investors. 25.8% of Roadrunner Transportation Systems shares are held by company insiders. Comparatively, 5.9% of Macquarie Infrastructure shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
Roadrunner Transportation Systems has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Macquarie Infrastructure has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.
Valuation & Earnings
This table compares Roadrunner Transportation Systems and Macquarie Infrastructure’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Roadrunner Transportation Systems||$1.97 billion||0.17||$100.85 million||$0.66||12.86|
|Macquarie Infrastructure||$1.75 billion||3.41||$604.97 million||$2.16||33.46|
Macquarie Infrastructure has higher revenue, but lower earnings than Roadrunner Transportation Systems. Roadrunner Transportation Systems is trading at a lower price-to-earnings ratio than Macquarie Infrastructure, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for Roadrunner Transportation Systems and Macquarie Infrastructure, as reported by MarketBeat.com.
|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 price target of $9.67, suggesting a potential upside of 13.86%. Macquarie Infrastructure has a consensus price target of $89.33, suggesting a potential upside of 23.61%. Given Macquarie Infrastructure’s stronger consensus rating and higher probable upside, analysts plainly believe Macquarie Infrastructure is more favorable than Roadrunner Transportation Systems.
Macquarie Infrastructure pays an annual dividend of $5.52 per share and has a dividend yield of 7.6%. 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. Roadrunner Transportation Systems has increased its dividend for 5 consecutive years.
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||N/A||N/A||N/A|
Macquarie Infrastructure beats Roadrunner Transportation Systems on 13 of the 17 factors compared between the two stocks.
Roadrunner Transportation Systems Company Profile
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.
Macquarie Infrastructure Company Profile
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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