Old Dominion Freight Line (NASDAQ: ODFL) and Genesee & Wyoming (NYSE:GWR) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Risk and Volatility
Old Dominion Freight Line has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500. Comparatively, Genesee & Wyoming has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Old Dominion Freight Line and Genesee & Wyoming, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Old Dominion Freight Line||2||6||4||0||2.17|
|Genesee & Wyoming||0||3||5||0||2.63|
Old Dominion Freight Line currently has a consensus price target of $127.55, suggesting a potential downside of 11.27%. Genesee & Wyoming has a consensus price target of $80.20, suggesting a potential upside of 12.69%. Given Genesee & Wyoming’s stronger consensus rating and higher possible upside, analysts plainly believe Genesee & Wyoming is more favorable than Old Dominion Freight Line.
Old Dominion Freight Line pays an annual dividend of $0.52 per share and has a dividend yield of 0.4%. Genesee & Wyoming does not pay a dividend. Old Dominion Freight Line pays out 9.3% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Old Dominion Freight Line and Genesee & Wyoming’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Old Dominion Freight Line||$3.36 billion||3.53||$463.77 million||$5.62||25.58|
|Genesee & Wyoming||$2.21 billion||2.02||$549.05 million||$8.77||8.12|
Genesee & Wyoming has lower revenue, but higher earnings than Old Dominion Freight Line. Genesee & Wyoming is trading at a lower price-to-earnings ratio than Old Dominion Freight Line, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
76.1% of Old Dominion Freight Line shares are owned by institutional investors. Comparatively, 96.3% of Genesee & Wyoming shares are owned by institutional investors. 12.0% of Old Dominion Freight Line shares are owned by company insiders. Comparatively, 3.5% of Genesee & Wyoming shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Old Dominion Freight Line and Genesee & Wyoming’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Old Dominion Freight Line||13.81%||17.37%||12.36%|
|Genesee & Wyoming||24.87%||5.23%||2.30%|
Genesee & Wyoming beats Old Dominion Freight Line on 9 of the 16 factors compared between the two stocks.
About Old Dominion Freight Line
Old Dominion Freight Line, Inc. is a union-free motor carrier providing regional, inter-regional and national less-than-truckload (LTL) services. The Company’s LTL services include ground and air expedited transportation for time-sensitive shipments, consumer household pickup and delivery and freight delivery services throughout North America. In addition to its LTL services, the Company offers a range of other value-added services that include container drayage, truckload brokerage, supply chain consulting and warehousing. As of December 31, 2016, the Company operated 226 service center locations, of which it owned 182 and leased 44. As of December 31, 2016, its network included 10 breakbulk facilities located in Rialto, California; Atlanta, Georgia; Columbus, Ohio; Indianapolis, Indiana; Greensboro, North Carolina; Harrisburg, Pennsylvania; Memphis and Morristown, Tennessee; Dallas, Texas, and Salt Lake City, Utah. As of December 31, 2016, the Company owned 7,994 tractors.
About Genesee & Wyoming
Genesee & Wyoming Inc. owns and operates freight railroads across the world. As of December 31, 2016, the Company owned or leased 122 freight railroads worldwide that are organized in 10 operating regions. The Company operates through three segments, which include North American Operations, Australian Operations and U.K./European Operations. In North America, the Company has operations in eight regions, such as Central, Coastal (which includes industrial switching and port operations), Midwest, Mountain West (which includes industrial switching operations), Northeast, Pacific, Southern and Canada. Outside the United States, the Company has operations in two regions: Australia and the United Kingdom/Europe (which consists of operations in the United Kingdom, Belgium, Germany, the Netherlands and Poland, as well as the provision of management and technical support through Freightliner to Saudi Arabia Railway Company).
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