Critical Survey: FTAI Infrastructure (NASDAQ:FIP) vs. Ryder System (NYSE:R)

FTAI Infrastructure (NASDAQ:FIP) and Ryder System (NYSE:R) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Profitability

This table compares FTAI Infrastructure and Ryder System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTAI Infrastructure	-74.10%	N/A	-8.63%
Ryder System	3.98%	19.14%	3.47%

Earnings and Valuation

This table compares FTAI Infrastructure and Ryder System”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTAI Infrastructure	$659.21 million	0.51	-$107.17 million	($5.19)	-0.55
Ryder System	$12.66 billion	0.85	$499.00 million	$13.12	21.51

Ryder System has higher revenue and earnings than FTAI Infrastructure. FTAI Infrastructure is trading at a lower price-to-earnings ratio than Ryder System, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

87.4% of FTAI Infrastructure shares are held by institutional investors. Comparatively, 87.5% of Ryder System shares are held by institutional investors. 2.6% of FTAI Infrastructure shares are held by insiders. Comparatively, 4.9% of Ryder System shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

FTAI Infrastructure has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Ryder System has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Dividends

FTAI Infrastructure pays an annual dividend of $0.12 per share and has a dividend yield of 4.2%. Ryder System pays an annual dividend of $4.04 per share and has a dividend yield of 1.4%. FTAI Infrastructure pays out -2.3% of its earnings in the form of a dividend. Ryder System pays out 30.8% 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. Ryder System has increased its dividend for 20 consecutive years. FTAI Infrastructure is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for FTAI Infrastructure and Ryder System, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Infrastructure	1	0	4	0	2.60
Ryder System	0	4	8	0	2.67

FTAI Infrastructure presently has a consensus price target of $9.95, suggesting a potential upside of 247.90%. Ryder System has a consensus price target of $296.67, suggesting a potential upside of 5.10%. Given FTAI Infrastructure’s higher probable upside, research analysts clearly believe FTAI Infrastructure is more favorable than Ryder System.

Summary

Ryder System beats FTAI Infrastructure on 13 of the 17 factors compared between the two stocks.

About FTAI Infrastructure

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates six freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.

About Ryder System

Ryder System, Inc. operates as a logistics and transportation company worldwide. It operates through three segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS). The FMS segment offers full-service leasing and leasing with flexible maintenance options; commercial vehicle rental services; and contract or transactional maintenance services of trucks, tractors, and trailers; access to diesel fuel; and fuel planning and tax reporting, cards, and monitoring services, and centralized billing, as well as sells used vehicles through its retail sales centers and www.ryder.com/used-trucks website, as well as digital and technology support services. The DTS segment offers equipment, maintenance, drivers, administrative, and additional services, as well as routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, and technology and communication systems support services. The SCS segment comprises distribution management services, such as designing and managing customer's distribution network and facilities; coordinating warehousing and transportation for inbound and outbound material flows; handling import and export for international shipments; coordinating just-in-time replenishment of component parts to manufacturing and final assembly; and offering shipments to customer distribution centers or end customer delivery points, as well as other value added services, such as light assembly of components. This segment also offers transportation management and brokerage services, such as shipment optimization, load scheduling, and delivery confirmation services; knowledge-based professional services; and e-commerce and last mile services. The company was founded in 1933 and is headquartered in Coral Gables, Florida.