Analyzing Vitran (VTNC) and YRC Worldwide (YRCW)
Vitran (NASDAQ: VTNC) and YRC Worldwide (NASDAQ:YRCW) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Earnings & Valuation
This table compares Vitran and YRC Worldwide’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|YRC Worldwide||$4.70 billion||0.11||$21.50 million||($0.35)||-42.97|
YRC Worldwide has higher revenue and earnings than Vitran. YRC Worldwide is trading at a lower price-to-earnings ratio than Vitran, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Vitran has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500. Comparatively, YRC Worldwide has a beta of 3.74, indicating that its share price is 274% more volatile than the S&P 500.
Insider & Institutional Ownership
85.4% of YRC Worldwide shares are owned by institutional investors. 3.7% of YRC Worldwide shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Vitran and YRC Worldwide, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
YRC Worldwide has a consensus target price of $16.33, suggesting a potential upside of 8.60%. Given YRC Worldwide’s higher probable upside, analysts clearly believe YRC Worldwide is more favorable than Vitran.
This table compares Vitran and YRC Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
YRC Worldwide beats Vitran on 7 of the 11 factors compared between the two stocks.
Vitran Corporation Inc. (Vitran), is a provider of freight surface transportation and related supply chain services throughout Canada 34 states in the eastern, southeastern, central, southwestern, and western United States. The Company’s business consists of Less-than-truckload services (LTL). These services are provided by stand-alone business units within their respective regions. Vitran’s business is carried on through its subsidiaries, which hold the licenses and permits required to carry on business. In March 2013, Vitran Corp Inc completed divestiture of its Supply Chain Operation division to Legacy Supply Chain. In October 2013, Vitran Corporation Inc. completed the sale of its United States LTL business. In March 2014, TransForce Inc completed the acquisition of Vitran.
About YRC Worldwide
YRC Worldwide Inc. is a holding company. The Company, through its subsidiaries, offers its customers a range of transportation services. The Company operates through two segments: YRC Freight and Regional Transportation. The Company has less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. YRC Freight segment offers a range of services for the transportation of industrial, commercial and retail goods in national, regional and international markets, primarily through the operation of owned or leased equipment in its North American ground distribution network. It provides transportation services for various categories of goods, which include apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal and metal products. The Company’s Regional Transportation segment consists of USF Holland LLC (Holland), New Penn Motor Express, LLC (New Penn) and USF Reddaway Inc. (Reddaway).
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