Analyzing C.H. Robinson Worldwide (CHRW) and The Competition

C.H. Robinson Worldwide (NASDAQ:CHRW) is one of 61 public companies in the “Air Freight & Logistics” industry, but how does it contrast to its rivals? We will compare C.H. Robinson Worldwide to similar businesses based on the strength of its analyst recommendations, earnings, valuation, dividends, profitability, institutional ownership and risk.

Volatility and Risk

C.H. Robinson Worldwide has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide’s rivals have a beta of 0.70, indicating that their average share price is 30% less volatile than the S&P 500.

Profitability

This table compares C.H. Robinson Worldwide and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C.H. Robinson Worldwide	3.67%	42.49%	12.74%
C.H. Robinson Worldwide Competitors	-1,651.27%	-22.27%	-11.48%

Institutional and Insider Ownership

93.2% of C.H. Robinson Worldwide shares are owned by institutional investors. Comparatively, 42.7% of shares of all “Air Freight & Logistics” companies are owned by institutional investors. 0.4% of C.H. Robinson Worldwide shares are owned by company insiders. Comparatively, 18.4% of shares of all “Air Freight & Logistics” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares C.H. Robinson Worldwide and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
C.H. Robinson Worldwide	$16.23 billion	$587.08 million	23.97
C.H. Robinson Worldwide Competitors	$9.41 billion	$472.10 million	9.44

C.H. Robinson Worldwide has higher revenue and earnings than its rivals. C.H. Robinson Worldwide is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations and price targets for C.H. Robinson Worldwide and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C.H. Robinson Worldwide	1	7	16	1	2.68
C.H. Robinson Worldwide Competitors	665	2030	2600	107	2.40

C.H. Robinson Worldwide presently has a consensus target price of $180.52, indicating a potential upside of 35.21%. As a group, “Air Freight & Logistics” companies have a potential upside of 12.47%. Given C.H. Robinson Worldwide’s stronger consensus rating and higher probable upside, equities research analysts clearly believe C.H. Robinson Worldwide is more favorable than its rivals.

Dividends

C.H. Robinson Worldwide pays an annual dividend of $2.52 per share and has a dividend yield of 1.9%. C.H. Robinson Worldwide pays out 45.2% of its earnings in the form of a dividend. As a group, “Air Freight & Logistics” companies pay a dividend yield of 2.5% and pay out 41.6% of their earnings in the form of a dividend. C.H. Robinson Worldwide has increased its dividend for 27 consecutive years. C.H. Robinson Worldwide lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

C.H. Robinson Worldwide beats its rivals on 12 of the 15 factors compared.

C.H. Robinson Worldwide Company Profile

C.H. Robinson Worldwide, Inc., together with its subsidiaries, provides freight transportation services, and related logistics and supply chain services in the United States and internationally. It operates through two segments: North American Surface Transportation and Global Forwarding. The company offers transportation and logistics services, such as truckload, less than truckload transportation brokerage services, which include the shipment of single or multiple pallets of freight; intermodal transportation that comprises the shipment service of freight in containers or trailers by a combination of truck and rail; and non-vessel operating common carrier and freight forwarding services, as well as organizes air shipments and provides door-to-door services. It also provides customs brokerage services; and other logistics services, such as fee-based managed, warehousing, small parcel, and other services. It has contractual relationships with approximately 45,000 transportation companies, including motor carriers, railroads, and ocean and air carriers. In addition, the company is involved in the buying, selling, and/or marketing of fresh fruits, vegetables, and other value-added perishable items under the Robinson Fresh brand name. Further, the company offers transportation management services or managed TMS; and other surface transportation services. It provides its fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors through a network of independent produce growers and suppliers. The company was founded in 1905 and is headquartered in Eden Prairie, Minnesota.