ArcBest Corporation (NASDAQ: ARCB) and YRC Worldwide (NASDAQ:YRCW) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Insider & Institutional Ownership

85.8% of ArcBest Corporation shares are held by institutional investors. Comparatively, 83.3% of YRC Worldwide shares are held by institutional investors. 1.0% of ArcBest Corporation shares are held by company insiders. Comparatively, 3.7% of YRC Worldwide shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

ArcBest Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. YRC Worldwide does not pay a dividend. ArcBest Corporation pays out 37.2% of its earnings in the form of a dividend.

Volatility & Risk

ArcBest Corporation has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, YRC Worldwide has a beta of 3.77, suggesting that its share price is 277% more volatile than the S&P 500.

Profitability

This table compares ArcBest Corporation and YRC Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ArcBest Corporation 0.83% 4.92% 2.26%
YRC Worldwide N/A -0.70% 0.16%

Earnings & Valuation

This table compares ArcBest Corporation and YRC Worldwide’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ArcBest Corporation $2.77 billion 0.28 $146.83 million $0.86 35.06
YRC Worldwide $4.80 billion 0.10 $254.10 million ($0.02) -681.16

YRC Worldwide has higher revenue and earnings than ArcBest Corporation. YRC Worldwide is trading at a lower price-to-earnings ratio than ArcBest Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ArcBest Corporation and YRC Worldwide, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArcBest Corporation 0 6 1 0 2.14
YRC Worldwide 0 2 3 0 2.60

ArcBest Corporation currently has a consensus price target of $26.75, suggesting a potential downside of 11.28%. YRC Worldwide has a consensus price target of $16.33, suggesting a potential upside of 19.83%. Given YRC Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe YRC Worldwide is more favorable than ArcBest Corporation.

Summary

YRC Worldwide beats ArcBest Corporation on 9 of the 16 factors compared between the two stocks.

About ArcBest Corporation

ArcBest Corporation is a holding company of businesses providing integrated logistics solutions. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. Its ArcBest segment includes truckload, expedite, international, warehousing, freight transportation, management services and moving services. Its FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles to customers in the United States and Canada through a network of third-party service providers.

About YRC Worldwide

YRC Worldwide Inc. is a holding company. The Company, through its subsidiaries, offers its customers a range of transportation services. The Company operates through two segments: YRC Freight and Regional Transportation. The Company has less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. YRC Freight segment offers a range of services for the transportation of industrial, commercial and retail goods in national, regional and international markets, primarily through the operation of owned or leased equipment in its North American ground distribution network. It provides transportation services for various categories of goods, which include apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal and metal products. The Company’s Regional Transportation segment consists of USF Holland LLC (Holland), New Penn Motor Express, LLC (New Penn) and USF Reddaway Inc. (Reddaway).

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