Shengfeng Development (NASDAQ:SFWL) versus Universal Logistics (NASDAQ:ULH) Financial Analysis

Shengfeng Development (NASDAQ:SFWL) and Universal Logistics (NASDAQ:ULH) are both small-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for Shengfeng Development and Universal Logistics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shengfeng Development	1	0	0	0	1.00
Universal Logistics	1	2	0	0	1.67

Universal Logistics has a consensus price target of $17.00, indicating a potential upside of 16.12%. Given Universal Logistics’ stronger consensus rating and higher probable upside, analysts clearly believe Universal Logistics is more favorable than Shengfeng Development.

Insider & Institutional Ownership

1.1% of Shengfeng Development shares are held by institutional investors. Comparatively, 25.5% of Universal Logistics shares are held by institutional investors. 73.5% of Universal Logistics shares are held by 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.

Profitability

This table compares Shengfeng Development and Universal Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shengfeng Development	N/A	N/A	N/A
Universal Logistics	-4.29%	2.65%	0.84%

Risk and Volatility

Shengfeng Development has a beta of -1.92, indicating that its stock price is 292% less volatile than the S&P 500. Comparatively, Universal Logistics has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Valuation and Earnings

This table compares Shengfeng Development and Universal Logistics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shengfeng Development	$572.48 million	0.15	$11.93 million	N/A	N/A
Universal Logistics	$1.56 billion	0.25	-$99.87 million	($2.51)	-5.83

Shengfeng Development has higher earnings, but lower revenue than Universal Logistics.

Summary

Universal Logistics beats Shengfeng Development on 9 of the 11 factors compared between the two stocks.

About Shengfeng Development

Shengfeng Development Limited, through its subsidiaries, provides contract logistics services in the People's Republic of China. The company offers business-to-business freight transportation services, such as full truckload and less than truckload; and cloud storage services, including warehouse management, order fulfillment, delivery process management, in-warehouse processing, and inventory optimization management services. It also provides value-added services comprising collection on delivery, customs declaration, delivery upstairs, packaging, pay-at-arrival, return proof of delivery, and shipment protection. The company serves clients in various industries, including manufacturing, energy, telecommunications, internet, fashion, fast moving consumer goods, publishing, agriculture, and e-commerce. Shengfeng Development Limited was founded in 2001 and is based in Fuzhou, the People's Republic of China.

About Universal Logistics

Universal Logistics Holdings, Inc. provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. The company offers truckload services, which include dry van, flatbed, heavy-haul, and refrigerated operations; domestic and international freight forwarding, and customs brokerage services. It transports various commodities comprising automotive parts, machinery, building materials, paper, food, consumer goods, furniture, steel, and other metals. The company also provides value-added services for individual customer requirements, including material handling, consolidation, sequencing, sub-assembly, cross-dock, kitting, repacking, warehousing, and returnable container management; and intermodal support services comprising short-to-medium distance delivery of steamship and rail truck containers between the port or railhead, and the customer. It serves automotive, steel, and other metals, retail and consumer goods, energy, and manufacturing industries, as well as other transportation companies who aggregate loads from various shippers. The company was formerly known as Universal Truckload Services, Inc. and changed its name to Universal Logistics Holdings, Inc. in April 2016. Universal Logistics Holdings, Inc. was founded in 1932 and is headquartered in Warren, Michigan.