Head-To-Head Comparison: Quality Distribution (QLTY) versus Genesee & Wyoming (NYSE:GWR)

Genesee & Wyoming (NYSE: GWR) and Quality Distribution (NASDAQ:QLTY) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Genesee & Wyoming and Quality Distribution, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Genesee & Wyoming 0 4 4 0 2.50
Quality Distribution 0 0 0 0 N/A

Genesee & Wyoming presently has a consensus target price of $81.25, indicating a potential downside of 2.26%. Given Genesee & Wyoming’s higher probable upside, equities analysts clearly believe Genesee & Wyoming is more favorable than Quality Distribution.

Valuation and Earnings

This table compares Genesee & Wyoming and Quality Distribution’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Genesee & Wyoming $2.00 billion 2.59 $141.13 million $2.11 39.40
Quality Distribution N/A N/A N/A $0.38 42.05

Genesee & Wyoming has higher revenue and earnings than Quality Distribution. Genesee & Wyoming is trading at a lower price-to-earnings ratio than Quality Distribution, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Genesee & Wyoming has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Quality Distribution has a beta of 2.83, suggesting that its share price is 183% more volatile than the S&P 500.

Profitability

This table compares Genesee & Wyoming and Quality Distribution’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Genesee & Wyoming 6.10% 5.80% 2.45%
Quality Distribution 0.95% N/A 2.09%

Institutional & Insider Ownership

96.2% of Genesee & Wyoming shares are owned by institutional investors. 3.5% of Genesee & Wyoming shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Genesee & Wyoming beats Quality Distribution on 9 of the 11 factors compared between the two stocks.

About Genesee & Wyoming

Genesee & Wyoming Inc. owns and operates freight railroads across the world. As of December 31, 2016, the Company owned or leased 122 freight railroads worldwide that are organized in 10 operating regions. The Company operates through three segments, which include North American Operations, Australian Operations and U.K./European Operations. In North America, the Company has operations in eight regions, such as Central, Coastal (which includes industrial switching and port operations), Midwest, Mountain West (which includes industrial switching operations), Northeast, Pacific, Southern and Canada. Outside the United States, the Company has operations in two regions: Australia and the United Kingdom/Europe (which consists of operations in the United Kingdom, Belgium, Germany, the Netherlands and Poland, as well as the provision of management and technical support through Freightliner to Saudi Arabia Railway Company).

About Quality Distribution

Quality Distribution Inc. is a United States-based provider of bulk transportation and logistics services. The Company also provides transportation and delivery services. The Company offers services, such as chemical bulk transportation, logistics, container and depot, intermodal, leasing and risk services. Its container and depot services for intermodal equipment include repair, maintenance and cleaning, and redistribution. Its intermodal services include tracking solutions, solutions regarding capacity, pre-clearing for shipments moving across borders, and management and control over every shipping segment from departure to delivery. It offers risk management consulting that covers insurance policy reviews, insurance or self-insurance analysis and brokerage relationship studies. It also offers audit services, electronic or on-site. It serves industries, including chemical, unconventional oil and gas, bulk liquid and food grade liquid.

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