YRC Worldwide (YRCW) & XPO Logistics (XPO) Critical Survey
YRC Worldwide (NASDAQ: YRCW) and XPO Logistics (NYSE:XPO) are both transportation companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Institutional & Insider Ownership
83.3% of YRC Worldwide shares are held by institutional investors. Comparatively, 89.6% of XPO Logistics shares are held by institutional investors. 3.7% of YRC Worldwide shares are held by company insiders. Comparatively, 16.9% of XPO Logistics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
YRC Worldwide has a beta of 3.73, suggesting that its stock price is 273% more volatile than the S&P 500. Comparatively, XPO Logistics has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500.
This is a summary of recent recommendations and price targets for YRC Worldwide and XPO Logistics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
YRC Worldwide currently has a consensus price target of $16.33, indicating a potential upside of 22.16%. XPO Logistics has a consensus price target of $70.00, indicating a potential upside of 3.53%. Given YRC Worldwide’s higher possible upside, equities research analysts plainly believe YRC Worldwide is more favorable than XPO Logistics.
Valuation and Earnings
This table compares YRC Worldwide and XPO Logistics’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|YRC Worldwide||$4.80 billion||0.09||$254.10 million||($0.02)||-668.17|
|XPO Logistics||$14.69 billion||0.54||$1.20 billion||$0.87||77.71|
XPO Logistics has higher revenue and earnings than YRC Worldwide. YRC Worldwide is trading at a lower price-to-earnings ratio than XPO Logistics, indicating that it is currently the more affordable of the two stocks.
This table compares YRC Worldwide and XPO Logistics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
XPO Logistics beats YRC Worldwide on 11 of the 14 factors compared between the two stocks.
YRC Worldwide Company Profile
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).
XPO Logistics Company Profile
XPO Logistics, Inc. is a global provider of supply chain solutions. The Company operates in two segments: Transportation and Logistics. The Transportation segment provides freight brokerage, last mile, less-than-truckload (LTL), full truckload and global forwarding services. The Logistics segment provides a range of contract logistics services, including highly engineered and customized solutions, value-added warehousing and distribution, cold chain solutions and other inventory solutions. Its freight brokerage operations encompass truck brokerage globally, as well as intermodal, drayage and expedite services in North America. In Logistics segment, it provides warehousing and distribution solutions, such as factory support, aftermarket support, integrated manufacturing, packaging, labeling and transportation. As of December 31, 2016, the Company had more than 10,000 independent owner operators under contract to provide drayage, expedite, last mile and LTL services to its customers.
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