Analyzing Echo Global Logistics (ECHO) and WEST JAPAN RWY/S (WJRYY)

Echo Global Logistics (NASDAQ:ECHO) and WEST JAPAN RWY/S (OTCMKTS:WJRYY) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Dividends

WEST JAPAN RWY/S pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Echo Global Logistics does not pay a dividend. WEST JAPAN RWY/S pays out 10.2% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.2% of WEST JAPAN RWY/S shares are owned by institutional investors. 3.2% of Echo Global Logistics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Echo Global Logistics and WEST JAPAN RWY/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echo Global Logistics 1 3 6 0 2.50
WEST JAPAN RWY/S 0 0 0 0 N/A

Echo Global Logistics currently has a consensus target price of $33.56, suggesting a potential upside of 43.28%. Given Echo Global Logistics’ higher possible upside, research analysts clearly believe Echo Global Logistics is more favorable than WEST JAPAN RWY/S.

Volatility & Risk

Echo Global Logistics has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500. Comparatively, WEST JAPAN RWY/S has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Profitability

This table compares Echo Global Logistics and WEST JAPAN RWY/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echo Global Logistics 1.46% 11.25% 4.66%
WEST JAPAN RWY/S 7.53% 11.04% 4.03%

Earnings and Valuation

This table compares Echo Global Logistics and WEST JAPAN RWY/S’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Echo Global Logistics $1.94 billion 0.34 $12.62 million $0.66 35.48
WEST JAPAN RWY/S $13.55 billion 0.97 $1.04 billion $5.48 12.48

WEST JAPAN RWY/S has higher revenue and earnings than Echo Global Logistics. WEST JAPAN RWY/S is trading at a lower price-to-earnings ratio than Echo Global Logistics, indicating that it is currently the more affordable of the two stocks.

Summary

Echo Global Logistics beats WEST JAPAN RWY/S on 8 of the 15 factors compared between the two stocks.

About Echo Global Logistics

Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States. It uses a proprietary technology platform to compile and analyze data from its multi-modal network of transportation providers for the transportation and logistics needs. The company offers services in various transportation modes, such as truckload, less-than truckload, small parcel, inter-modal, domestic air, and expedited and international. Its principal transportation management and logistics services include rate negotiation; procurement of transportation; shipment execution and tracking; carrier management, selection, reporting, and compliance; executive dashboard presentations and detailed shipment reports; freight bill payment and audit; claims processing and service refund management; design and management of inbound client freight programs; individually configured Web portals and self-service data warehouses; enterprise resource planning integration with transactional shipment data; and integration of shipping applications into client e-commerce sites, as well as back-end reports customized to the internal reporting needs of the business. The company serves clients operating in various industries, such as manufacturing, construction, food and beverage, consumer products, and retail. Echo Global Logistics, Inc. was founded in 2005 and is headquartered in Chicago, Illinois.

About WEST JAPAN RWY/S

West Japan Railway Company provides passenger railway transport services in Japan. The company operates through Transportation Operations, Retail Business, Real Estate Business, and Other Businesses segments. It operates a railway network that stretches across an area of approximately 104,000 square kilometers covering 18 prefectures in western Honshu and the northern tip of Kyushu comprising a total of 1,200 railway stations with an operating route length of 5,008.7 kilometers. The company also operates high-speed intercity passenger service between Shin-Osaka station in Osaka and Hakata station in Fukuoka in northern Kyushu; and high-speed intercity passenger service between Tokyo and Kanazawa stations. In addition, its urban network offers service to the Kyoto–Osaka–Kobe metropolitan area with an operating route length of 946.0 kilometers. Further, the company operates other conventional lines with an operating route length of 3,250.1 kilometers comprising intercity transport provided by limited express and express services; regional transport for commuters and students in and around regional hub cities, such as Hiroshima and Okayama; and local lines with low transport density, as well as TWILIGHT EXPRESS MIZUKAZE, a sleeper train to invigorate the West Japan Area. Additionally, it offers bus and ferry services; operates convenience stores, department stores, specialty stores, food and beverage outlets, and tourism campaigns; and provides travel agency, advertising agency, hotel, maintenance and engineering, and other services. The company is also involved in the sale and leasing of residential and urban development properties; management of shopping centers in station buildings and other facilities; operation of large station buildings at hub railway stations; and development of commercial facilities near railway station areas and underneath elevated tracks. West Japan Railway Company was founded in 1987 and is headquartered in Osaka, Japan.

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