Expeditors International of Washington (NASDAQ: EXPD) and C.H. Robinson Worldwide (NASDAQ:CHRW) are both large-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Earnings and Valuation
This table compares Expeditors International of Washington and C.H. Robinson Worldwide’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Expeditors International of Washington||$6.92 billion||1.90||$489.34 million||$2.48||30.31|
|C.H. Robinson Worldwide||$14.87 billion||0.84||$504.89 million||$3.48||25.80|
Risk and Volatility
Expeditors International of Washington has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.
This table compares Expeditors International of Washington and C.H. Robinson Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Expeditors International of Washington||7.36%||24.84%||15.87%|
|C.H. Robinson Worldwide||3.41%||36.63%||12.30%|
Expeditors International of Washington pays an annual dividend of $0.90 per share and has a dividend yield of 1.2%. C.H. Robinson Worldwide pays an annual dividend of $1.84 per share and has a dividend yield of 2.0%. Expeditors International of Washington pays out 36.3% of its earnings in the form of a dividend. C.H. Robinson Worldwide pays out 52.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Expeditors International of Washington has increased its dividend for 23 consecutive years and C.H. Robinson Worldwide has increased its dividend for 11 consecutive years.
Insider and Institutional Ownership
91.9% of Expeditors International of Washington shares are held by institutional investors. Comparatively, 90.4% of C.H. Robinson Worldwide shares are held by institutional investors. 1.0% of Expeditors International of Washington shares are held by insiders. Comparatively, 1.0% of C.H. Robinson Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings for Expeditors International of Washington and C.H. Robinson Worldwide, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Expeditors International of Washington||2||6||1||0||1.89|
|C.H. Robinson Worldwide||3||7||8||0||2.28|
Expeditors International of Washington currently has a consensus target price of $66.13, suggesting a potential downside of 12.03%. C.H. Robinson Worldwide has a consensus target price of $84.60, suggesting a potential downside of 5.78%. Given C.H. Robinson Worldwide’s stronger consensus rating and higher possible upside, analysts plainly believe C.H. Robinson Worldwide is more favorable than Expeditors International of Washington.
Expeditors International of Washington beats C.H. Robinson Worldwide on 9 of the 17 factors compared between the two stocks.
About Expeditors International of Washington
Expeditors International of Washington, Inc. provides logistics services in the Americas, North Asia, South Asia, Europe, the Middle East, Africa, and India. The company offers airfreight services, such as air freight consolidation and forwarding; ocean freight and ocean services, such as ocean freight consolidation, direct ocean forwarding, and order management; customs brokerage, intra-continental ground transportation and delivery, and warehousing and distribution services; and customs clearance, purchase order management, vendor consolidation, time-definite transportation services, cargo insurance, cargo monitoring and tracking, and other logistics solutions. It acts as a freight consolidator or as an agent for the airline, which carries the shipment. The company also provides ancillary services that include preparation of shipping and customs documentation, packing, crating, insurance services, negotiation of letters of credit, and the preparation of documentation to comply with local export laws. Its customers include retailing and wholesaling, electronics, and industrial and manufacturing companies. Expeditors International of Washington, Inc. was founded in 1979 and is headquartered in Seattle, Washington.
About C.H. Robinson Worldwide
C.H. Robinson Worldwide, Inc., a third party logistics company, provides freight transportation services and logistics solutions to companies in various industries worldwide. The company operates through three segments: North American Surface Transportation, Global Forwarding, and Robinson Fresh. It offers transportation and logistics services, such as truckload; less than truckload transportation which include the shipment of single or multiple pallets of freight; intermodal transportation, which is shipment service of freight in trailers or containers by a combination of truck and rail; and non-vessel ocean common carrier or freight forwarding services, as well as organizes air shipments and provides door-to-door services. The company also provides custom broker services; and other logistics services, including fee-based managed, warehousing, small parcel, and other services. It has contractual relationships with approximately 73,000 transportation companies, including motor carriers, railroads, air freight, and ocean carriers. In addition, the company is involved in buying, selling, and marketing of fresh produce, including fresh fruits, vegetables, and other perishable items. Further, it provides transportation management services or managed TMS; and other surface transportation services outside of North America. The company offers its fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors through a network of independent produce growers and suppliers. C.H. Robinson Worldwide, Inc. was founded in 1905 and is headquartered in Eden Prairie, Minnesota.
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