Royal Mail (OTCMKTS:ROYMY) versus Universal Logistics (NASDAQ:ULH) Financial Survey

Royal Mail (OTCMKTS:ROYMY) and Universal Logistics (NASDAQ:ULH) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Royal Mail and Universal Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Mail	N/A	N/A	N/A
Universal Logistics	-4.29%	2.61%	0.83%

Institutional & Insider Ownership

25.5% of Universal Logistics shares are held by institutional investors. 73.5% of Universal Logistics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Royal Mail and Universal Logistics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Mail	0	0	0	0	0.00
Universal Logistics	1	2	0	0	1.67

Universal Logistics has a consensus price target of $17.00, indicating a potential upside of 26.76%. Given Universal Logistics’ stronger consensus rating and higher probable upside, analysts plainly believe Universal Logistics is more favorable than Royal Mail.

Earnings & Valuation

This table compares Royal Mail and Universal Logistics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Mail	$15.94 billion	0.25	$67.88 million	N/A	N/A
Universal Logistics	$1.56 billion	0.23	-$99.87 million	($2.51)	-5.34

Royal Mail has higher revenue and earnings than Universal Logistics.

Risk & Volatility

Royal Mail has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Universal Logistics has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Summary

Universal Logistics beats Royal Mail on 6 of the 11 factors compared between the two stocks.

About Royal Mail

International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider in the United Kingdom and internationally. The company offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. It also provides services for the collection, sorting, and delivery of parcels and letters. In addition, the company operates ground-based parcel delivery networks in Europe that covers 40 countries and nation states. Further, it provides express parcel delivery and logistics services. Additionally, the company engages in property holdings and facilities management activities. It serves consumers, and small and medium-sized enterprises. The company was formerly known as Royal Mail plc and changed its name to International Distributions Services plc in October 2022. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom.

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.