Universal Logistics (NASDAQ:ULH) versus Shengfeng Development (NASDAQ:SFWL) Financial Comparison

Universal Logistics (NASDAQ:ULH) and Shengfeng Development (NASDAQ:SFWL) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Volatility and Risk

Universal Logistics has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Shengfeng Development has a beta of -1.92, indicating that its share price is 292% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Universal Logistics and Shengfeng Development, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Logistics	1	2	0	0	1.67
Shengfeng Development	1	0	0	0	1.00

Universal Logistics presently has a consensus target price of $17.00, indicating a potential upside of 6.18%. Given Universal Logistics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Universal Logistics is more favorable than Shengfeng Development.

Institutional and Insider Ownership

25.5% of Universal Logistics shares are held by institutional investors. Comparatively, 1.1% of Shengfeng Development shares are held by institutional investors. 73.5% of Universal Logistics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Universal Logistics and Shengfeng Development”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Logistics	$1.54 billion	0.27	-$99.87 million	($2.51)	-6.38
Shengfeng Development	$572.48 million	0.11	$11.93 million	N/A	N/A

Shengfeng Development has lower revenue, but higher earnings than Universal Logistics.

Profitability

This table compares Universal Logistics and Shengfeng Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Logistics	-4.29%	2.65%	0.84%
Shengfeng Development	N/A	N/A	N/A

Summary

Universal Logistics beats Shengfeng Development on 9 of the 11 factors compared between the two stocks.

About Universal Logistics

Universal Logistics Holdings, Inc. provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. The company offers truckload services, which include dry van, flatbed, heavy-haul, and refrigerated operations; domestic and international freight forwarding, and customs brokerage services. It transports various commodities comprising automotive parts, machinery, building materials, paper, food, consumer goods, furniture, steel, and other metals. The company also provides value-added services for individual customer requirements, including material handling, consolidation, sequencing, sub-assembly, cross-dock, kitting, repacking, warehousing, and returnable container management; and intermodal support services comprising short-to-medium distance delivery of steamship and rail truck containers between the port or railhead, and the customer. It serves automotive, steel, and other metals, retail and consumer goods, energy, and manufacturing industries, as well as other transportation companies who aggregate loads from various shippers. The company was formerly known as Universal Truckload Services, Inc. and changed its name to Universal Logistics Holdings, Inc. in April 2016. Universal Logistics Holdings, Inc. was founded in 1932 and is headquartered in Warren, Michigan.

About Shengfeng Development

Shengfeng Development Limited, through its subsidiaries, provides contract logistics services in the People's Republic of China. The company offers business-to-business freight transportation services, such as full truckload and less than truckload; and cloud storage services, including warehouse management, order fulfillment, delivery process management, in-warehouse processing, and inventory optimization management services. It also provides value-added services comprising collection on delivery, customs declaration, delivery upstairs, packaging, pay-at-arrival, return proof of delivery, and shipment protection. The company serves clients in various industries, including manufacturing, energy, telecommunications, internet, fashion, fast moving consumer goods, publishing, agriculture, and e-commerce. Shengfeng Development Limited was founded in 2001 and is based in Fuzhou, the People's Republic of China.