ArcBest Corporation (NASDAQ: ARCB) and YRC Worldwide (NASDAQ:YRCW) are both small-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Dividends

ArcBest Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. YRC Worldwide does not pay a dividend. ArcBest Corporation pays out 37.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares ArcBest Corporation and YRC Worldwide’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ArcBest Corporation $2.77 billion 0.26 $146.83 million $0.86 32.50
YRC Worldwide $4.80 billion 0.09 $254.10 million ($0.02) -649.68

YRC Worldwide has higher revenue and earnings than ArcBest Corporation. YRC Worldwide is trading at a lower price-to-earnings ratio than ArcBest Corporation, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ArcBest Corporation has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, YRC Worldwide has a beta of 3.74, meaning that its stock price is 274% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for ArcBest Corporation and YRC Worldwide, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArcBest Corporation 0 6 1 0 2.14
YRC Worldwide 0 2 3 0 2.60

ArcBest Corporation currently has a consensus price target of $26.75, suggesting a potential downside of 4.29%. YRC Worldwide has a consensus price target of $16.33, suggesting a potential upside of 25.64%. Given YRC Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe YRC Worldwide is more favorable than ArcBest Corporation.

Profitability

This table compares ArcBest Corporation and YRC Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ArcBest Corporation 0.83% 4.92% 2.26%
YRC Worldwide N/A -0.70% 0.16%

Insider & Institutional Ownership

85.8% of ArcBest Corporation shares are owned by institutional investors. Comparatively, 83.3% of YRC Worldwide shares are owned by institutional investors. 1.0% of ArcBest Corporation shares are owned by company insiders. Comparatively, 3.7% of YRC Worldwide shares 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.

Summary

YRC Worldwide beats ArcBest Corporation on 9 of the 16 factors compared between the two stocks.

About ArcBest Corporation

ArcBest Corporation is a holding company of businesses providing integrated logistics solutions. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. Its ArcBest segment includes truckload, expedite, international, warehousing, freight transportation, management services and moving services. Its FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles to customers in the United States and Canada through a network of third-party service providers.

About YRC Worldwide

YRC Worldwide Inc. is a holding company. The Company, through its subsidiaries, offers its customers a range of transportation services. The Company operates through two segments: YRC Freight and Regional Transportation. The Company has less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. YRC Freight segment offers a range of services for the transportation of industrial, commercial and retail goods in national, regional and international markets, primarily through the operation of owned or leased equipment in its North American ground distribution network. It provides transportation services for various categories of goods, which include apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal and metal products. The Company’s Regional Transportation segment consists of USF Holland LLC (Holland), New Penn Motor Express, LLC (New Penn) and USF Reddaway Inc. (Reddaway).

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