Marten Transport (NASDAQ: MRTN) and YRC Worldwide (NASDAQ:YRCW) are both small-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Marten Transport pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. YRC Worldwide does not pay a dividend. Marten Transport pays out 16.1% of its earnings in the form of a dividend.
This table compares Marten Transport and YRC Worldwide’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Insider & Institutional Ownership
67.2% of Marten Transport shares are held by institutional investors. Comparatively, 85.1% of YRC Worldwide shares are held by institutional investors. 22.9% of Marten Transport shares are held by insiders. Comparatively, 4.7% of YRC Worldwide shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Marten Transport and YRC Worldwide, as provided by MarketBeat.com.
||Strong Buy Ratings
Marten Transport presently has a consensus price target of $25.00, suggesting a potential upside of 21.65%. YRC Worldwide has a consensus price target of $20.00, suggesting a potential upside of 93.05%. Given YRC Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe YRC Worldwide is more favorable than Marten Transport.
Risk and Volatility
Marten Transport has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, YRC Worldwide has a beta of 4.08, suggesting that its share price is 308% more volatile than the S&P 500.
Valuation and Earnings
This table compares Marten Transport and YRC Worldwide’s revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Marten Transport has higher earnings, but lower revenue than YRC Worldwide. Marten Transport is trading at a lower price-to-earnings ratio than YRC Worldwide, indicating that it is currently the more affordable of the two stocks.
Marten Transport Company Profile
Marten Transport, Ltd. is a temperature-sensitive truckload carrier. The Company focuses on transporting and distributing food and other consumer-packaged goods that require a temperature-controlled or insulated environment. The Company operates through four segments: Truckload, Dedicated, Intermodal and Brokerage. It operates throughout the United States and in parts of Canada and Mexico. The Company’s medium-to-long-haul traffic lanes are between the Midwest and the West Coast, Southwest, Southeast, and the East Coast, as well as from California to the Pacific Northwest. It provides regional truckload carrier services in the Southeast, West Coast, Midwest, South Central and Northeast regions. It also offers loading and unloading activities, equipment detention and other ancillary services. The Company’s Truckload segment provides a combination of regional short-haul and medium-to-long-haul full-load transportation services.
YRC Worldwide Company Profile
YRC Worldwide Inc., through its subsidiaries, provides various transportation services primarily in North America. Its YRC Freight segment offers various services to transport industrial, commercial, and retail goods; and provides specialized services, including guaranteed expedited services, time-specific deliveries, cross-border services, coast-to-coast air delivery, product returns, temperature-sensitive shipment protection, and government material shipments. It serves manufacturing, wholesale, retail, and government customers. As of December 31, 2017, this segment had a fleet of approximately 7,600 tractors comprising 5,900 owned and 1,700 leased; and 30,900 trailers consisting of 23,800 owned and 7,100 leased. The company's Regional Transportation segment provides regional delivery services, which include next-day local area delivery and second-day services, consolidation/distribution services, protect-from-freezing and hazardous materials handling, truck loading, and other specialized offerings; guaranteed and expedited delivery services consisting of day-definite, hour-definite, and time definite capabilities; interregional delivery services; and cross-border delivery services, as well as operates hollandregional.com, newpenn.com, and reddawayregional.com, which are e-commerce Websites offering online resources to manage transportation activities. This segment had a fleet of approximately 6,500 tractors, including 4,700 owned and 1,800 leased; and 13,700 trailers comprising 10,500 owned and 3,200 leased. The company was formerly known as Yellow Roadway Corporation and changed its name to YRC Worldwide Inc. in January 2006. YRC Worldwide Inc. was founded in 1924 and is headquartered in Overland Park, Kansas.
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