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

Earnings and Valuation

This table compares YRC Worldwide and Vitran’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
YRC Worldwide $4.70 billion 0.10 $21.50 million ($0.35) -41.08
Vitran N/A N/A N/A ($1.87) -3.47

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for YRC Worldwide and Vitran, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YRC Worldwide 0 1 2 0 2.67
Vitran 0 0 0 0 N/A

YRC Worldwide presently has a consensus price target of $16.33, indicating a potential upside of 13.58%. Given YRC Worldwide’s higher probable upside, research analysts plainly believe YRC Worldwide is more favorable than Vitran.

Profitability

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

Net Margins Return on Equity Return on Assets
YRC Worldwide -0.22% -0.70% -0.22%
Vitran N/A N/A N/A

Risk and Volatility

YRC Worldwide has a beta of 3.73, suggesting that its stock price is 273% more volatile than the S&P 500. Comparatively, Vitran has a beta of 2.37, suggesting that its stock price is 137% more volatile than the S&P 500.

Insider & Institutional Ownership

85.4% of YRC Worldwide shares are owned by institutional investors. 3.7% of YRC Worldwide shares are owned by 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.

Summary

YRC Worldwide beats Vitran on 7 of the 11 factors compared between the two stocks.

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).

About Vitran

Vitran Corporation Inc. (Vitran), is a provider of freight surface transportation and related supply chain services throughout Canada 34 states in the eastern, southeastern, central, southwestern, and western United States. The Company’s business consists of Less-than-truckload services (LTL). These services are provided by stand-alone business units within their respective regions. Vitran’s business is carried on through its subsidiaries, which hold the licenses and permits required to carry on business. In March 2013, Vitran Corp Inc completed divestiture of its Supply Chain Operation division to Legacy Supply Chain. In October 2013, Vitran Corporation Inc. completed the sale of its United States LTL business. In March 2014, TransForce Inc completed the acquisition of Vitran.

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