Landstar System (LSTR) and Its Peers Head to Head Review

Landstar System (NASDAQ:LSTR) is one of 100 publicly-traded companies in the “Ground Transportation” industry, but how does it weigh in compared to its rivals? We will compare Landstar System to related businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, earnings and institutional ownership.

Valuation and Earnings

This table compares Landstar System and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Landstar System	$4.74 billion	$115.01 million	30.37
Landstar System Competitors	$8.74 billion	$911.04 million	0.48

Landstar System’s rivals have higher revenue and earnings than Landstar System. Landstar System is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Landstar System has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Landstar System’s rivals have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.

Dividends

Landstar System pays an annual dividend of $1.76 per share and has a dividend yield of 1.2%. Landstar System pays out 37.3% of its earnings in the form of a dividend. As a group, “Ground Transportation” companies pay a dividend yield of 1.6% and pay out 27.0% of their earnings in the form of a dividend. Landstar System has raised its dividend for 10 consecutive years. Landstar System lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

98.0% of Landstar System shares are owned by institutional investors. Comparatively, 60.5% of shares of all “Ground Transportation” companies are owned by institutional investors. 0.7% of Landstar System shares are owned by company insiders. Comparatively, 15.5% of shares of all “Ground Transportation” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Landstar System and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Landstar System	3.03%	23.89%	11.48%
Landstar System Competitors	6.87%	12.61%	4.01%

Analyst Ratings

This is a summary of recent recommendations for Landstar System and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Landstar System	2	12	4	0	2.11
Landstar System Competitors	1368	6530	8696	267	2.47

Landstar System currently has a consensus price target of $182.33, suggesting a potential upside of 27.20%. As a group, “Ground Transportation” companies have a potential upside of 20.56%. Given Landstar System’s higher probable upside, research analysts clearly believe Landstar System is more favorable than its rivals.

Summary

Landstar System rivals beat Landstar System on 10 of the 15 factors compared.

Landstar System Company Profile

Landstar System, Inc. provides integrated transportation management solutions in the United States, Canada, Mexico, and internationally. It operates through two segments: Transportation Logistics and Insurance. The Transportation Logistics segment offers a range of transportation services, including truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo, and customs brokerage, as well as offers transportation services to other transportation companies, such as third party logistics and less-than-truckload services. It provides truck services through dry and specialty vans of various sizes, unsided/platform trailers, temperature-controlled vans, and containers; rail intermodal services through contracts with domestic and Canadian railroads, certain short-line railroads, and asset-based intermodal equipment; and domestic and international air and ocean services. This segment serves the automotive parts and assemblies, consumer durables, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, and military equipment industries. The Insurance segment provides risk and claims management services; and reinsures risks of the company's independent contractors. It markets its services through independent commission sales agents and third party capacity providers. Landstar System, Inc. was incorporated in 1991 and is headquartered in Jacksonville, Florida.