Critical Survey: FedEx (FDX) vs. Air T (AIRT)
FedEx (NYSE:FDX) and Air T (NASDAQ:AIRT) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Risk and Volatility
FedEx has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Air T has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.
71.2% of FedEx shares are held by institutional investors. Comparatively, 22.1% of Air T shares are held by institutional investors. 8.5% of FedEx shares are held by insiders. Comparatively, 50.3% of Air T shares are held by 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.
FedEx pays an annual dividend of $2.60 per share and has a dividend yield of 1.1%. Air T does not pay a dividend. FedEx pays out 17.0% of its earnings in the form of a dividend. FedEx has raised its dividend for 8 consecutive years.
This is a breakdown of current ratings and price targets for FedEx and Air T, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FedEx presently has a consensus target price of $285.75, indicating a potential upside of 26.27%. Given FedEx’s higher possible upside, analysts clearly believe FedEx is more favorable than Air T.
Earnings & Valuation
This table compares FedEx and Air T’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FedEx||$65.45 billion||0.91||$4.57 billion||$15.31||14.78|
|Air T||$194.52 million||0.34||$2.27 million||N/A||N/A|
FedEx has higher revenue and earnings than Air T.
This table compares FedEx and Air T’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
FedEx beats Air T on 12 of the 15 factors compared between the two stocks.
FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company's FedEx Express segment offers shipping services for delivery of packages and freight. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages. The company's FedEx Freight segment offers less-than-truckload and freight delivery services. As of May 31, 2018, it operated approximately 27,000 vehicles and 370 service centers. The company's FedEx Services segment provides sales, marketing, information technology, communications, customer, technical support, billing and collection, and other back-office support services. It also offers FedEx Mobile, a suite of solutions to track packages, create shipping labels, view account-specific rate quotes, and access drop-off location information; FedEx Office, a suite of printing and shipping management solutions for copying and digital printing, professional finishing, document creation, direct mail, signs and graphics, computer rentals, Wi-Fi, and corporate print solutions; and packing services, supplies, and boxes, as well as FedEx Express and FedEx Ground shipping services. The company's Corporate, Other and Eliminations segment offers international trade services in customs brokerage, and ocean and air freight forwarding services; cross-border enablement and technology solutions, and e-commerce transportation solutions; integrated supply chain management solutions; time-critical shipment services; critical inventory and service parts logistics, 3-D printing, and technology repair. This segment also provides international trade advisory services, including assistance with the customs-trade partnership against terrorism program; and publishes customs duty and tax information. FedEx Corporation was founded in 1971 and is headquartered in Memphis, Tennessee.
About Air T
Air T, Inc., together with its subsidiaries, provides overnight air cargo, ground equipment sale, and ground support services in the United States and internationally. The company's Overnight Air Cargo segment offers air express delivery services. As of March 31, 2018, this segment had 79 aircrafts under the dry-lease agreements with FedEx. Its Ground Equipment Sales segment manufactures, sells, and services aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles, and other specialized equipment. This segment offers its products to passenger and cargo airlines, ground handling companies, the United States Air Force, airports, and industrial customers. The company's Ground Support Services segment provides aircraft ground support equipment, fleet, and facility maintenance services to airlines and aviation service providers. Its Leasing segment provides funding for equipment leasing transactions for the leasing of equipment manufactured by the company and third parties. The company's Printing Equipment and Maintenance segment designs, manufactures, and sells digital print production equipment, spare parts, supplies, and consumable items, as well as provides maintenance contracts. Its Commercial Jet Engines and Parts segment supplies commercial jet engines and components for airlines and original equipment manufacturers, as well as for maintenance, repair, and overhaul service providers. This segment also offers commercial aircraft storage, storage maintenance, and aircraft disassembly/part-out services; commercial aircraft parts, exchanges, procurement services, consignment programs, and overhaul and repair services; and aircraft instrumentation, avionics, and a range of accessories for civilian, military transport, regional/commuter and business/commercial jet, and turboprop aircraft. Air T, Inc. was founded in 1980 and is headquartered in Denver, North Carolina.
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