Analyzing Swift Transportation (NYSE:SWFT) and C.H. Robinson Worldwide (CHRW)

Swift Transportation (NYSE: SWFT) and C.H. Robinson Worldwide (NASDAQ:CHRW) are both mid-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Earnings & Valuation

This table compares Swift Transportation and C.H. Robinson Worldwide’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Swift Transportation $4.01 billion 0.89 $480.95 million $0.90 29.63
C.H. Robinson Worldwide $13.90 billion 0.67 $848.19 million $3.40 19.64

C.H. Robinson Worldwide has higher revenue and earnings than Swift Transportation. C.H. Robinson Worldwide is trading at a lower price-to-earnings ratio than Swift Transportation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Swift Transportation and C.H. Robinson Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Swift Transportation 2.99% 22.23% 5.56%
C.H. Robinson Worldwide 3.49% 37.41% 12.84%

Risk & Volatility

Swift Transportation has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Swift Transportation and C.H. Robinson Worldwide, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Swift Transportation 0 6 10 0 2.63
C.H. Robinson Worldwide 3 6 3 0 2.00

Swift Transportation currently has a consensus price target of $27.85, indicating a potential upside of 4.41%. C.H. Robinson Worldwide has a consensus price target of $69.83, indicating a potential upside of 4.57%. Given C.H. Robinson Worldwide’s higher probable upside, analysts clearly believe C.H. Robinson Worldwide is more favorable than Swift Transportation.

Institutional and Insider Ownership

78.8% of Swift Transportation shares are held by institutional investors. Comparatively, 90.7% of C.H. Robinson Worldwide shares are held by institutional investors. 44.9% of Swift Transportation shares are held by company insiders. Comparatively, 0.9% of C.H. Robinson Worldwide shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

C.H. Robinson Worldwide pays an annual dividend of $1.80 per share and has a dividend yield of 2.7%. Swift Transportation does not pay a dividend. C.H. Robinson Worldwide pays out 52.9% of its earnings in the form of a dividend. C.H. Robinson Worldwide has increased its dividend for 10 consecutive years.

Summary

C.H. Robinson Worldwide beats Swift Transportation on 10 of the 17 factors compared between the two stocks.

About Swift Transportation

Swift Transportation Company is a multi-faceted transportation services company. As of December 31, 2016, the Company operated fleets of truckload equipment in North America from over 40 terminals near key freight centers and traffic lanes. The Company’ segments include Truckload, Dedicated, Swift Refrigerated and Intermodal. The Company’s other segments include its logistics and freight brokerage services, as well as support services that its subsidiaries provide to customers and owner-operators, including repair and maintenance shop services, equipment leasing, and insurance. As of December 31, 2016, the Company’s fleet consisted of 13,937 company tractors and 4,429 owner-operator tractors, as well as 64,066 trailers, and 9,131 intermodal containers. Its suite of service offerings include line-haul services, dedicated customer contracts, temperature-controlled units, intermodal freight solutions, flatbed hauling, freight brokerage and logistics.

About C.H. Robinson Worldwide

C.H. Robinson Worldwide, Inc. is a provider of transportation services and logistics solutions through a network of offices operating in North America, Europe, Asia, Australia, New Zealand and South America. The Company’s segments include North American Surface Transportation (NAST), Global Forwarding, Robinson Fresh, and All Other and Corporate. The NAST segment provides freight transportation services across North America through a network of offices in the United States, Canada and Mexico. The primary services provided by Global Forwarding segment include ocean freight services, air freight services, and customs brokerage. The Robinson Fresh segment provides sourcing under the trade name Robinson Fresh. The All Other and Corporate segment primarily consists of Managed Services and Other Surface Transportation outside of North America. It develops global transportation and distribution networks to provide transportation and supply chain services throughout the world.

What are top analysts saying about Swift Transportation Company? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Swift Transportation Company and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit