Analyzing GATX (GATX) & DSV AS/ADR (DSDVY)

GATX (NYSE: GATX) and DSV AS/ADR (OTCMKTS:DSDVY) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

0.1% of DSV AS/ADR shares are held by institutional investors. 3.6% of GATX shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares GATX and DSV AS/ADR’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GATX $1.38 billion 1.94 $502.00 million $4.70 15.37
DSV AS/ADR $11.37 billion 1.39 $452.81 million $1.40 29.95

GATX has higher earnings, but lower revenue than DSV AS/ADR. GATX is trading at a lower price-to-earnings ratio than DSV AS/ADR, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

GATX has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, DSV AS/ADR has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.

Profitability

This table compares GATX and DSV AS/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GATX 38.12% 12.45% 2.77%
DSV AS/ADR 3.99% 24.44% 8.95%

Dividends

GATX pays an annual dividend of $1.76 per share and has a dividend yield of 2.4%. DSV AS/ADR pays an annual dividend of $0.11 per share and has a dividend yield of 0.3%. GATX pays out 37.4% of its earnings in the form of a dividend. DSV AS/ADR pays out 7.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current recommendations for GATX and DSV AS/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GATX 1 4 1 0 2.00
DSV AS/ADR 0 0 0 0 N/A

GATX presently has a consensus price target of $68.50, indicating a potential downside of 5.15%. Given GATX’s higher probable upside, analysts clearly believe GATX is more favorable than DSV AS/ADR.

Summary

GATX beats DSV AS/ADR on 9 of the 15 factors compared between the two stocks.

GATX Company Profile

GATX Corporation leases, operates, manages, and remarkets assets in the rail and marine markets in North America and internationally. The company operates through four segments: Rail North America, Rail International, American Steamship Company (ASC), and Portfolio Management. The Rail North America segment primarily leases railcars and locomotives. This segment also offers services, including interior cleaning of railcars, routine maintenance and repairs to car body and safety appliances, regulatory compliance work, wheelset replacements, exterior blast and painting, and car stenciling. The Rail International segment leases railcars, as well as offers repair, regulatory compliance, and modernization work for railcars. The ASC segment operates a fleet of vessels that provide waterborne transportation of dry bulk commodities, such as iron ore, coal, limestone aggregates, and metallurgical limestone for the steel making, automobile manufacturing, electricity generation, and non-residential construction markets. The Portfolio Management segment is involved in leasing, marine, and asset remarketing operations, as well as manages portfolios of assets for third parties. As of December 31, 2017, it operated a fleet of 147,005 railcars; 665 locomotives; and 12 vessels. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.

DSV AS/ADR Company Profile

DSV A/S provides transport and logistics services in Europe, the Middle East, Africa, North America and South America, Asia, Australia, and the Pacific. The company operates through three divisions: Air & Sea, Road, and Solutions. The company offers air and sea freight services, including standard freight, compliance, and carrier services, as well as sea-air freight services. It also provides road freight services, such as part and full loads, groupage, specialized transport, and document handling services, as well as online services comprising track and trace, and e-services. In addition, the company offers logistics solutions, including automotive, consumer products, healthcare, high-tech, and industrial logistics solutions; and warehousing and inventory management solutions. Further, it provides value added services comprising purchase order management, pick-up and delivery, cargo consolidation, customs clearance, cargo insurance, etc.; and e-fulfilment, receiving order, packing, and handling returns solutions. The company was formerly known as DSV, De Sammensluttede Vognmænd af 13-7 1976 A/S and changed its name to DSV A/S in 2003. DSV A/S was founded in 1976 and is headquartered in Hedehusene, Denmark.

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