Financial Analysis: Vitran (VTNC) versus YRC Worldwide (YRCW)

YRC Worldwide (NASDAQ: YRCW) and Vitran (NASDAQ:VTNC) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for YRC Worldwide and Vitran, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YRC Worldwide 0 1 3 0 2.75
Vitran 0 0 0 0 N/A

YRC Worldwide presently has a consensus target price of $17.00, suggesting a potential upside of 12.36%. Given YRC Worldwide’s higher possible upside, research analysts clearly believe YRC Worldwide is more favorable than Vitran.

Risk & Volatility

YRC Worldwide has a beta of 3.73, suggesting that its stock price is 273% more volatile than the S&P 500. Comparatively, Vitran has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500.

Institutional and Insider Ownership

85.4% of YRC Worldwide shares are owned by institutional investors. 3.7% of YRC Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
YRC Worldwide -0.22% -0.70% -0.22%
Vitran N/A N/A N/A

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YRC Worldwide $4.70 billion 0.11 $21.50 million ($0.35) -42.20
Vitran N/A N/A N/A ($1.87) -3.47

YRC Worldwide has higher revenue and earnings than Vitran. YRC Worldwide is trading at a lower price-to-earnings ratio than Vitran, indicating that it is currently the more affordable of the two stocks.

Summary

YRC Worldwide beats Vitran on 7 of the 11 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 Vitran

Vitran Corporation Inc. (Vitran), is a provider of freight surface transportation and related supply chain services throughout Canada 34 states in the eastern, southeastern, central, southwestern, and western United States. The Company’s business consists of Less-than-truckload services (LTL). These services are provided by stand-alone business units within their respective regions. Vitran’s business is carried on through its subsidiaries, which hold the licenses and permits required to carry on business. In March 2013, Vitran Corp Inc completed divestiture of its Supply Chain Operation division to Legacy Supply Chain. In October 2013, Vitran Corporation Inc. completed the sale of its United States LTL business. In March 2014, TransForce Inc completed the acquisition of Vitran.

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