Contrasting ArcBest Corporation (ARCB) and The Competition

ArcBest Corporation (NASDAQ: ARCB) is one of 28 public companies in the “Ground Freight & Logistics” industry, but how does it compare to its peers? We will compare ArcBest Corporation to related companies based on the strength of its dividends, valuation, risk, institutional ownership, earnings, analyst recommendations and profitability.

Dividends

ArcBest Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. ArcBest Corporation pays out 37.2% of its earnings in the form of a dividend. As a group, “Ground Freight & Logistics” companies pay a dividend yield of 1.6% and pay out 35.4% of their earnings in the form of a dividend. ArcBest Corporation lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

85.3% of ArcBest Corporation shares are owned by institutional investors. Comparatively, 71.3% of shares of all “Ground Freight & Logistics” companies are owned by institutional investors. 1.0% of ArcBest Corporation shares are owned by company insiders. Comparatively, 11.9% of shares of all “Ground Freight & Logistics” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares ArcBest Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
ArcBest Corporation $2.77 billion $146.83 million 38.84
ArcBest Corporation Competitors $5.92 billion $1.74 billion -5.33

ArcBest Corporation’s peers have higher revenue and earnings than ArcBest Corporation. ArcBest Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares ArcBest Corporation and its peers’ 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%
ArcBest Corporation Competitors 10.93% 15.03% 5.34%

Volatility and Risk

ArcBest Corporation has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, ArcBest Corporation’s peers have a beta of 1.38, indicating that their average stock price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for ArcBest Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArcBest Corporation 0 7 0 0 2.00
ArcBest Corporation Competitors 187 1316 1823 71 2.52

ArcBest Corporation currently has a consensus price target of $27.40, suggesting a potential downside of 17.96%. As a group, “Ground Freight & Logistics” companies have a potential upside of 9.97%. Given ArcBest Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe ArcBest Corporation has less favorable growth aspects than its peers.

Summary

ArcBest Corporation peers beat ArcBest Corporation on 12 of the 15 factors compared.

ArcBest Corporation Company Profile

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.

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