Analyzing ArcBest (ARCB) & Con-way (CNW)

ArcBest (NASDAQ: ARCB) and Con-way (NYSE:CNW) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Valuation and Earnings

This table compares ArcBest and Con-way’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ArcBest $2.70 billion 0.36 $18.65 million $0.93 40.22
Con-way N/A N/A N/A $2.34 N/A

ArcBest has higher revenue and earnings than Con-way. Con-way is trading at a lower price-to-earnings ratio than ArcBest, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for ArcBest and Con-way, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArcBest 0 7 0 0 2.00
Con-way 0 0 0 0 N/A

ArcBest currently has a consensus target price of $30.00, indicating a potential downside of 19.79%.

Profitability

This table compares ArcBest and Con-way’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ArcBest 0.88% 5.34% 2.47%
Con-way 3.09% 14.75% 5.26%

Insider & Institutional Ownership

89.6% of ArcBest shares are owned by institutional investors. 1.0% of ArcBest shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

ArcBest pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. Con-way does not pay a dividend. ArcBest pays out 34.4% of its earnings in the form of a dividend. Con-way has raised its dividend for 3 consecutive years.

Summary

Con-way beats ArcBest on 6 of the 10 factors compared between the two stocks.

ArcBest Company Profile

ArcBest Corporation is a holding company of businesses providing integrated logistics solutions. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. Its ArcBest segment includes truckload, expedite, international, warehousing, freight transportation, management services and moving services. Its FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles to customers in the United States and Canada through a network of third-party service providers.

Con-way Company Profile

Con-way Inc. (Con-way) provides transportation, logistics and supply-chain management services for a range of manufacturing, industrial and retail customers. The Company’s business units operate in regional, inter-regional and transcontinental less-than-truckload and full-truckload freight transportation, multimodal freight brokerage and trailer manufacturing. The Company operates in three segments: Freight, Logistics and Truckload. The Freight segment consists of the operating results of the Con-way Freight business unit. Con-way Freight is a less-than-truckload motor carrier that utilizes a network of freight service centers to provide day-definite regional, inter-regional and transcontinental less-than-truckload freight services. The Logistics segment consists of the operating results of the Menlo Logistics (Menlo) business unit, which develops contract-logistics solutions. The Truckload segment consists of the operating results of the Con-way Truckload business unit.

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