ZTO Express (Cayman) (NYSE:ZTO) versus Kuehne & Nagel International (OTCMKTS:KHNGY) Head to Head Contrast

ZTO Express (Cayman) (NYSE:ZTO) and Kuehne & Nagel International (OTCMKTS:KHNGY) are both large-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Dividends

ZTO Express (Cayman) pays an annual dividend of $0.76 per share and has a dividend yield of 3.0%. Kuehne & Nagel International pays an annual dividend of $1.24 per share and has a dividend yield of 2.6%. ZTO Express (Cayman) pays out 48.1% of its earnings in the form of a dividend. Kuehne & Nagel International pays out 70.5% 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. ZTO Express (Cayman) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares ZTO Express (Cayman) and Kuehne & Nagel International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZTO Express (Cayman)	$7.02 billion	2.06	$1.30 billion	$1.58	16.20
Kuehne & Nagel International	$29.53 billion	0.96	$1.06 billion	$1.76	26.67

ZTO Express (Cayman) has higher earnings, but lower revenue than Kuehne & Nagel International. ZTO Express (Cayman) is trading at a lower price-to-earnings ratio than Kuehne & Nagel International, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

ZTO Express (Cayman) has a beta of -0.17, meaning that its stock price is 117% less volatile than the S&P 500. Comparatively, Kuehne & Nagel International has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for ZTO Express (Cayman) and Kuehne & Nagel International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZTO Express (Cayman)	0	2	2	2	3.00
Kuehne & Nagel International	2	3	1	0	1.83

ZTO Express (Cayman) currently has a consensus target price of $24.45, suggesting a potential downside of 4.48%. Given ZTO Express (Cayman)’s stronger consensus rating and higher probable upside, equities analysts clearly believe ZTO Express (Cayman) is more favorable than Kuehne & Nagel International.

Profitability

This table compares ZTO Express (Cayman) and Kuehne & Nagel International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZTO Express (Cayman)	18.50%	14.05%	9.90%
Kuehne & Nagel International	3.52%	40.73%	7.20%

Insider & Institutional Ownership

41.7% of ZTO Express (Cayman) shares are owned by institutional investors. 41.3% of ZTO Express (Cayman) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

ZTO Express (Cayman) beats Kuehne & Nagel International on 12 of the 17 factors compared between the two stocks.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. It offers freight forwarding services; and delivery services for e-commerce and traditional merchants, and other express service users. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China.

About Kuehne & Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.