Roadrunner Transportation (NYSE: RRTS) and Forward Air (NASDAQ:FWRD) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
This table compares Roadrunner Transportation and Forward Air’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
72.1% of Roadrunner Transportation shares are owned by institutional investors. Comparatively, 98.4% of Forward Air shares are owned by institutional investors. 25.8% of Roadrunner Transportation shares are owned by insiders. Comparatively, 2.4% of Forward Air shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Roadrunner Transportation and Forward Air’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Roadrunner Transportation||$2.03 billion||0.04||-$360.32 million||N/A||N/A|
|Forward Air||$1.10 billion||1.43||$87.32 million||$2.36||22.61|
Forward Air has lower revenue, but higher earnings than Roadrunner Transportation.
This is a summary of recent ratings and price targets for Roadrunner Transportation and Forward Air, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Roadrunner Transportation currently has a consensus price target of $8.00, indicating a potential upside of 246.32%. Forward Air has a consensus price target of $60.00, indicating a potential upside of 12.44%. Given Roadrunner Transportation’s higher probable upside, equities research analysts plainly believe Roadrunner Transportation is more favorable than Forward Air.
Forward Air pays an annual dividend of $0.60 per share and has a dividend yield of 1.1%. Roadrunner Transportation does not pay a dividend. Forward Air pays out 25.4% of its earnings in the form of a dividend.
Volatility and Risk
Roadrunner Transportation has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Forward Air has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.
Forward Air beats Roadrunner Transportation on 10 of the 14 factors compared between the two stocks.
About Roadrunner Transportation
Roadrunner Transportation Systems, Inc. provides asset-right transportation and asset-light logistics services. The company operates through three segments: Truckload Logistics (TL), Less-than-Truckload (LTL), and Global Solutions. The company's TL segment arranges pickup and delivery of truckload, intermodal, and ground and air expedited freight through its network of 42 TL service centers, 40 company brokers, and approximately 90 independent brokerage agents in the United States, Mexico, and Canada. It also offers temperature-controlled, dry van, intermodal drayage, and flatbed services; and specializes in the transport of automotive parts, refrigerated foods, poultry, and beverages, as well as on-demand ground and air expedited services. The company's LTL segment is involved in the pickup, consolidation, linehaul, deconsolidation, and delivery of LTL shipments in the United States and Canada through a network of 44 LTL service centers and approximately 150 third-party delivery agents. The company's Global Solutions segment offers domestic and international transportation and logistics solutions, including pricing, contract management, transportation mode and carrier selection, freight tracking, freight bill payment and audit, cost reporting and analysis, dispatch, and freight consolidation and warehousing. This segment also provides domestic and international air and ocean transportation, and customs brokerage services. Roadrunner Transportation Systems, Inc. is headquartered in Downers Grove, Illinois.
About Forward Air
Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United State and Canada. The company operates through four segments: Expedited Less-than-truckload (LTL), Truckload Premium Services (TLS), Intermodal, and Pool Distribution (Pool). The Expedited LTL segment provides expedited regional, inter-regional, and national LTL services, as well as local pick-up and delivery services. It also offers shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling services. This segment provides its transportation services through a network of terminals located at or near airports. The TLS segment offers expedited truckload brokerage, dedicated fleet, and high security and temperature-controlled logistics services. The Intermodal segment provides intermodal container drayage services; and contract, and container freight station warehouse and handling services. The Pool segment offers high-frequency handling and distribution of time-sensitive products to various destinations. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.
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