USA Truck (NASDAQ: USAK) and Werner Enterprises (NASDAQ:WERN) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Volatility and Risk
USA Truck has a beta of 2.52, indicating that its share price is 152% more volatile than the S&P 500. Comparatively, Werner Enterprises has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Werner Enterprises pays an annual dividend of $0.28 per share and has a dividend yield of 0.9%. USA Truck does not pay a dividend. Werner Enterprises pays out 25.5% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares USA Truck and Werner Enterprises’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|USA Truck||$417.62 million||0.15||$18.65 million||($1.53)||-5.23|
|Werner Enterprises||$2.05 billion||1.07||$334.48 million||$1.10||27.68|
Werner Enterprises has higher revenue and earnings than USA Truck. USA Truck is trading at a lower price-to-earnings ratio than Werner Enterprises, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
67.1% of USA Truck shares are held by institutional investors. Comparatively, 66.2% of Werner Enterprises shares are held by institutional investors. 3.5% of USA Truck shares are held by company insiders. Comparatively, 34.8% of Werner Enterprises shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares USA Truck and Werner Enterprises’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for USA Truck and Werner Enterprises, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
USA Truck presently has a consensus price target of $8.75, suggesting a potential upside of 9.38%. Werner Enterprises has a consensus price target of $29.13, suggesting a potential downside of 4.35%. Given USA Truck’s stronger consensus rating and higher probable upside, research analysts clearly believe USA Truck is more favorable than Werner Enterprises.
Werner Enterprises beats USA Truck on 9 of the 14 factors compared between the two stocks.
About USA Truck
USA Truck, Inc. is a truckload carrier providing transportation of general commodities throughout the continental United States and into and out of portions of Mexico and Canada. The Company operates through two segments: Trucking and Strategic Capacity Solutions (SCS). The Trucking segment consists of truckload and dedicated freight services. The SCS segment consists of freight brokerage and rail intermodal services. The Company transports full dry van trailer loads of freight from origin to destination without intermediate stops or handling. The Company offers a range of truckload and logistics services to a customer base that spans a range of industries. The Company’s fleet of approximately 1,832 tractors consists of 1,568 company tractors and 264 independent contractor tractors. The Company owns approximately 6,200 trailers. The Company also transports general commodities into and out of Mexico by allowing through-trailer service from its terminal in Laredo, Texas.
About Werner Enterprises
Werner Enterprises, Inc. is a transportation and logistics company. The Company is engaged in transporting truckload shipments of general commodities in both interstate and intrastate commerce. It operates through two segments: Truckload and Werner Logistics. It provides logistics services through its Werner Logistics division. As of December 31, 2016, it had a fleet of approximately 7,100 trucks, of which 6,305 were company-operated and 795 were owned and operated by independent contractors. Its Werner Logistics division operated 74 intermodal drayage trucks as of December 31, 2016. Its Truckload segment comprises the One-Way Truckload and Specialized Services units. It operates in several provinces of Canada to provide through-trailer service into and out of Mexico. Its Werner Logistic segment is a non-asset-based transportation and logistics provider and comprises four operating units: truck brokerage, freight management, the intermodal and Werner Global Logistics international.
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