Head-To-Head Analysis: Landstar System (LSTR) and YRC Worldwide (YRCW)

YRC Worldwide (NASDAQ: YRCW) and Landstar System (NASDAQ:LSTR) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
YRC Worldwide N/A -3.46% 0.80%
Landstar System 5.17% 27.86% 14.34%

Risk and Volatility

YRC Worldwide has a beta of 3.71, indicating that its stock price is 271% more volatile than the S&P 500. Comparatively, Landstar System has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for YRC Worldwide and Landstar System, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YRC Worldwide 0 1 3 0 2.75
Landstar System 1 6 6 0 2.38

YRC Worldwide presently has a consensus target price of $20.00, suggesting a potential upside of 76.83%. Landstar System has a consensus target price of $112.50, suggesting a potential downside of 2.17%. Given YRC Worldwide’s stronger consensus rating and higher probable upside, equities analysts plainly believe YRC Worldwide is more favorable than Landstar System.

Dividends

Landstar System pays an annual dividend of $0.60 per share and has a dividend yield of 0.5%. YRC Worldwide does not pay a dividend. Landstar System pays out 16.0% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares YRC Worldwide and Landstar System’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YRC Worldwide $4.89 billion 0.08 -$10.80 million $0.15 75.40
Landstar System $3.65 billion 1.33 $177.08 million $3.75 30.67

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

Institutional & Insider Ownership

80.1% of YRC Worldwide shares are held by institutional investors. Comparatively, 97.4% of Landstar System shares are held by institutional investors. 4.7% of YRC Worldwide shares are held by company insiders. Comparatively, 0.9% of Landstar System shares are held by company 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.

Summary

Landstar System beats YRC Worldwide on 9 of the 16 factors compared between the two stocks.

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.

Landstar System Company Profile

Landstar System, Inc. provides integrated transportation management solutions in the United States, Canada, Mexico, and internationally. It operates through two segments, Transportation Logistics and Insurance. The Transportation Logistics segment offers a range of transportation services, including truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo, and customs brokerage, as well as offers transportation services to other transportation companies, including third party logistics and less-than-truckload service providers. This segment provides truck services through dry and specialty vans of various sizes, unsided/platform trailers, temperature-controlled vans, and containers; rail intermodal services through contracts with domestic and Canadian railroads; and air and ocean services through contracts with domestic and international airlines and ocean lines. It serves automotive products, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, and military equipment industries. The Insurance segment reinsures certain risks of the company's independent contractors. The company markets its services through independent commission sales agents and third party capacity providers. Landstar System, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.

Receive News & Ratings for YRC Worldwide Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for YRC Worldwide and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply