Critical Review: DHL Group (OTCMKTS:DHLGY) and Schneider National (NYSE:SNDR)

DHL Group (OTCMKTS:DHLGY) and Schneider National (NYSE:SNDR) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Earnings and Valuation

This table compares DHL Group and Schneider National”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHL Group	$93.72 billion	0.60	$3.96 billion	$3.47	14.59
Schneider National	$5.67 billion	0.79	$103.60 million	$0.59	43.19

DHL Group has higher revenue and earnings than Schneider National. DHL Group is trading at a lower price-to-earnings ratio than Schneider National, indicating that it is currently the more affordable of the two stocks.

Dividends

DHL Group pays an annual dividend of $1.46 per share and has a dividend yield of 2.9%. Schneider National pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. DHL Group pays out 42.1% of its earnings in the form of a dividend. Schneider National pays out 67.8% 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. Schneider National has increased its dividend for 2 consecutive years. DHL Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares DHL Group and Schneider National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHL Group	4.24%	15.88%	5.12%
Schneider National	1.83%	3.66%	2.23%

Volatility and Risk

DHL Group has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Schneider National has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for DHL Group and Schneider National, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHL Group	0	6	1	2	2.56
Schneider National	1	8	6	1	2.44

Schneider National has a consensus target price of $28.43, suggesting a potential upside of 11.55%. Given Schneider National’s higher probable upside, analysts plainly believe Schneider National is more favorable than DHL Group.

Institutional and Insider Ownership

28.5% of Schneider National shares are owned by institutional investors. 32.7% of Schneider National shares are owned 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.

Summary

DHL Group beats Schneider National on 11 of the 18 factors compared between the two stocks.

About DHL Group

Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.

About Schneider National

Schneider National, Inc., together with its subsidiaries, provides surface transportation and logistics solutions in the United States, Canada, and Mexico. It operates through three segments: Truckload, Intermodal, and Logistics. The Truckload segment offers over the road freight transportation services primarily through dry van, bulk, temperature-controlled, and flat-bed trailers across either network or dedicated configurations. The Intermodal segment provides door-to-door container on flat car services through a combination of rail and dray transportation using company-owned containers, chassis, and trucks. The Logistics segment offers asset-light freight brokerage, supply chain, warehousing, and import/export services to manage and move its customers' freight. The company leases equipment, such as trucks to owner-operators; and provides insurance for the company drivers and owner-operators. Schneider National, Inc. was founded in 1935 and is headquartered in Green Bay, Wisconsin.