Contrasting Tianci International (NASDAQ:CIIT) and Forward Air (NASDAQ:FWRD)

Tianci International (NASDAQ:CIIT) and Forward Air (NASDAQ:FWRD) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Profitability

This table compares Tianci International and Forward Air’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tianci International	-16.67%	-73.20%	-69.25%
Forward Air	-10.10%	78.18%	0.40%

Insider and Institutional Ownership

97.0% of Forward Air shares are owned by institutional investors. 56.5% of Tianci International shares are owned by company insiders. Comparatively, 15.7% of Forward Air shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Tianci International and Forward Air”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tianci International	$14.24 million	0.18	-$2.37 million	($9.00)	-0.24
Forward Air	$2.56 billion	0.21	-$107.80 million	($8.04)	-2.14

Tianci International has higher earnings, but lower revenue than Forward Air. Forward Air is trading at a lower price-to-earnings ratio than Tianci International, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Tianci International has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, Forward Air has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Tianci International and Forward Air, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tianci International	1	0	0	0	1.00
Forward Air	1	0	2	1	2.75

Forward Air has a consensus price target of $26.50, suggesting a potential upside of 53.71%. Given Forward Air’s stronger consensus rating and higher probable upside, analysts plainly believe Forward Air is more favorable than Tianci International.

Summary

Forward Air beats Tianci International on 11 of the 14 factors compared between the two stocks.

About Tianci International

The Company’s primary line of business is global logistics. The Company through its subsidiary, Roshing, provides global logistics services, encompassing booking and the transportation arrangement and related logistics solutions. Roshing’s customized logistics solutions are tailored to meet the diverse needs of its customers. As a logistics shipping operator, Roshing focuses on ocean freight forwarding services, including container shipping and bulk goods shipping service. For the container shipping service, Roshing charters cargo space from shipping suppliers (such as shipowners, ship carrier or non-vessel operating common carriers) and then sub-charters that cargo space to its customers (cargo owners or cargo agents).

About Forward Air

Forward Air Corporation is a transportation and logistics company that specializes in expedited freight and time-sensitive shipments. Its services include less-than-truckload transportation, truckload services, intermodal drayage, freight forwarding and other logistics solutions. The company’s ground transportation network connects major North American markets and includes services supporting air cargo shipments. Following its acquisition of Omni Logistics, Forward Air also offers international freight forwarding, customs brokerage and related supply-chain services.