Analyzing USA Truck (USAK) and YRC Worldwide (YRCW)

USA Truck (NASDAQ: USAK) and YRC Worldwide (NASDAQ:YRCW) are both small-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Risk and Volatility

USA Truck has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, YRC Worldwide has a beta of 3.71, suggesting that its stock price is 271% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for USA Truck and YRC Worldwide, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USA Truck 0 0 3 0 3.00
YRC Worldwide 0 1 3 0 2.75

USA Truck currently has a consensus price target of $30.50, indicating a potential upside of 36.04%. YRC Worldwide has a consensus price target of $20.00, indicating a potential upside of 88.86%. Given YRC Worldwide’s higher possible upside, analysts clearly believe YRC Worldwide is more favorable than USA Truck.

Earnings and Valuation

This table compares USA Truck and YRC Worldwide’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
USA Truck $446.53 million 0.42 $7.49 million ($0.56) -40.04
YRC Worldwide $4.89 billion 0.07 -$10.80 million $0.15 70.60

USA Truck has higher earnings, but lower revenue than YRC Worldwide. USA Truck 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 and Insider Ownership

71.2% of USA Truck shares are owned by institutional investors. Comparatively, 79.2% of YRC Worldwide shares are owned by institutional investors. 3.5% of USA Truck shares are owned by insiders. Comparatively, 4.7% of YRC Worldwide shares are owned by 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 USA Truck and YRC Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USA Truck 2.86% 2.66% 0.61%
YRC Worldwide N/A -3.46% 0.80%

Summary

YRC Worldwide beats USA Truck on 8 of the 13 factors compared between the two stocks.

About USA Truck

USA Truck, Inc., a truckload carrier, provides general commodities transportation services in the United States, Mexico, and Canada. It operates through two segments, Trucking and USAT Logistics. The Trucking segment offers truckload services as a medium to long-haul common carrier; and dedicated freight services. The USAT Logistics segment provides freight brokerage and rail intermodal services. As of December 31, 2017, the company's fleet consisted of 1,669 tractors, which included 247 independent contractor tractors; and 5,596 trailers. USA Truck, Inc. was founded in 1983 and is headquartered in Van Buren, Arkansas.

About YRC Worldwide

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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