Contrasting Universal Logistics (NASDAQ:ULH) and Aurizon (OTCMKTS:QRNNF)

Universal Logistics (NASDAQ:ULH) and Aurizon (OTCMKTS:QRNNF) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Universal Logistics and Aurizon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Logistics	-3.16%	2.01%	0.62%
Aurizon	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and price targets for Universal Logistics and Aurizon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Logistics	2	1	0	0	1.33
Aurizon	0	1	0	0	2.00

Universal Logistics presently has a consensus price target of $15.00, suggesting a potential downside of 25.26%. Aurizon has a consensus price target of $3.80, suggesting a potential upside of 22.58%. Given Aurizon’s stronger consensus rating and higher possible upside, analysts plainly believe Aurizon is more favorable than Universal Logistics.

Insider and Institutional Ownership

25.5% of Universal Logistics shares are owned by institutional investors. Comparatively, 13.3% of Aurizon shares are owned by institutional investors. 73.5% of Universal Logistics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Universal Logistics and Aurizon”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Logistics	$1.56 billion	0.34	-$99.87 million	($1.84)	-10.91
Aurizon	N/A	N/A	N/A	$0.12	26.27

Aurizon has lower revenue, but higher earnings than Universal Logistics. Universal Logistics is trading at a lower price-to-earnings ratio than Aurizon, indicating that it is currently the more affordable of the two stocks.

Dividends

Universal Logistics pays an annual dividend of $0.42 per share and has a dividend yield of 2.1%. Aurizon pays an annual dividend of $0.06 per share and has a dividend yield of 2.1%. Universal Logistics pays out -22.8% of its earnings in the form of a dividend. Aurizon pays out 54.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Universal Logistics is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Universal Logistics beats Aurizon on 7 of the 12 factors compared between the two stocks.

About Universal Logistics

Universal Logistics Holdings, Inc. provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. The company offers truckload services, which include dry van, flatbed, heavy-haul, and refrigerated operations; domestic and international freight forwarding, and customs brokerage services. It transports various commodities comprising automotive parts, machinery, building materials, paper, food, consumer goods, furniture, steel, and other metals. The company also provides value-added services for individual customer requirements, including material handling, consolidation, sequencing, sub-assembly, cross-dock, kitting, repacking, warehousing, and returnable container management; and intermodal support services comprising short-to-medium distance delivery of steamship and rail truck containers between the port or railhead, and the customer. It serves automotive, steel, and other metals, retail and consumer goods, energy, and manufacturing industries, as well as other transportation companies who aggregate loads from various shippers. The company was formerly known as Universal Truckload Services, Inc. and changed its name to Universal Logistics Holdings, Inc. in April 2016. Universal Logistics Holdings, Inc. was founded in 1932 and is headquartered in Warren, Michigan.

About Aurizon

Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia. The company operates through Network, Coal, Bulk, and Other segments. It transports various commodities, including mining, agricultural, industrial, and retail products; and retail goods and groceries across small and big towns, and cities, as well as coal and iron ore. The company also operates and manages the Central Queensland Coal Network that consists of 2,670 kilometers of track network; and provides various specialist services, such as rail design, engineering, construction, management, and maintenance, as well as supply chain solutions. It serves miners, primary producers, and the industry. The company was formerly known as QR National Limited and changed its name to Aurizon Holdings Limited in December 2012. The company was incorporated in 2010 and is headquartered in Fortitude Valley, Australia.