Quality Distribution (NASDAQ: QLTY) and Union Pacific Corporation (NYSE:UNP) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Dividends

Union Pacific Corporation pays an annual dividend of $2.42 per share and has a dividend yield of 2.1%. Quality Distribution does not pay a dividend. Union Pacific Corporation pays out 43.8% of its earnings in the form of a dividend. Union Pacific Corporation has increased its dividend for 7 consecutive years.

Institutional and Insider Ownership

78.4% of Union Pacific Corporation shares are held by institutional investors. 0.2% of Union Pacific Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Quality Distribution and Union Pacific Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quality Distribution 0 0 0 0 N/A
Union Pacific Corporation 0 12 6 0 2.33

Union Pacific Corporation has a consensus price target of $113.56, suggesting a potential downside of 0.18%. Given Union Pacific Corporation’s higher probable upside, analysts plainly believe Union Pacific Corporation is more favorable than Quality Distribution.

Profitability

This table compares Quality Distribution and Union Pacific Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quality Distribution 0.95% N/A 2.09%
Union Pacific Corporation 21.79% 22.70% 8.05%

Earnings & Valuation

This table compares Quality Distribution and Union Pacific Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Quality Distribution N/A N/A N/A N/A N/A
Union Pacific Corporation $20.72 billion 4.39 $9.80 billion $5.52 20.61

Union Pacific Corporation has higher revenue and earnings than Quality Distribution.

Summary

Union Pacific Corporation beats Quality Distribution on 10 of the 11 factors compared between the two stocks.

About Quality Distribution

Quality Distribution Inc. is a United States-based provider of bulk transportation and logistics services. The Company also provides transportation and delivery services. The Company offers services, such as chemical bulk transportation, logistics, container and depot, intermodal, leasing and risk services. Its container and depot services for intermodal equipment include repair, maintenance and cleaning, and redistribution. Its intermodal services include tracking solutions, solutions regarding capacity, pre-clearing for shipments moving across borders, and management and control over every shipping segment from departure to delivery. It offers risk management consulting that covers insurance policy reviews, insurance or self-insurance analysis and brokerage relationship studies. It also offers audit services, electronic or on-site. It serves industries, including chemical, unconventional oil and gas, bulk liquid and food grade liquid.

About Union Pacific Corporation

Union Pacific Corporation is a railroad operating company in the United States. The Company operates through its principal operating company, Union Pacific Railroad Company (UPRR). Its business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Its freight traffic consists of bulk, manifest, and premium business. Bulk traffic primarily consists of coal, grain, soda ash, ethanol, rock and crude oil shipped in unit trains-trains transporting a single commodity from one origin to one destination. Manifest traffic includes individual carload or less than train-load business involving commodities, such as lumber, paper, food and chemicals. The transportation of finished vehicles, auto parts, intermodal containers and truck trailers are included as part of its premium business. As of December 31, 2016, its network included 32,070 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways.

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