Critical Survey: Schneider National (SNDR) versus YRC Worldwide (YRCW)

YRC Worldwide (NASDAQ: YRCW) and Schneider National (NASDAQ:SNDR) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
YRC Worldwide N/A -0.70% 0.16%
Schneider National 4.32% 13.37% 5.98%

Earnings and Valuation

This table compares YRC Worldwide and Schneider National’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
YRC Worldwide $4.80 billion 0.10 $254.10 million ($0.02) -681.66
Schneider National $4.20 billion 1.13 $544.67 million N/A N/A

Schneider National has higher revenue, but lower earnings than YRC Worldwide.

Analyst Ratings

This is a summary of recent ratings for YRC Worldwide and Schneider National, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YRC Worldwide 0 2 3 0 2.60
Schneider National 0 2 8 0 2.80

YRC Worldwide presently has a consensus price target of $16.33, indicating a potential upside of 19.75%. Schneider National has a consensus price target of $24.00, indicating a potential downside of 10.55%. Given YRC Worldwide’s higher probable upside, research analysts clearly believe YRC Worldwide is more favorable than Schneider National.

Insider & Institutional Ownership

83.7% of YRC Worldwide shares are held by institutional investors. 3.7% of YRC Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Schneider National beats YRC Worldwide on 7 of the 12 factors compared between the two stocks.

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).

About Schneider National

Schneider National, Inc. is a provider of transportation, logistics and related services. The Company’s transportation solutions include one-way, intermodal, dedicated, bulk, transport management, trans loading services, international services and Schneider payment services. Its supply chain management and consulting services include logistics solution design, global supply chain services, enterprise and market entry assistance, and sourcing and compliance. Schneider Logistics is the subsidiary of the Company, which provides supply chain management technology, managed services, engineering services and freight payment. The Company operates approximately 10,000 tractors, around 28,800 trailers and around 14,300 containers. It has operations in around 36 locations in Canada, the United States and Mexico.

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