Reviewing Landstar System (NASDAQ:LSTR) and Kuehne & Nagel International (OTCMKTS:KHNGY)

Kuehne & Nagel International (OTCMKTS:KHNGY) and Landstar System (NASDAQ:LSTR) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Dividends

Kuehne & Nagel International pays an annual dividend of $0.93 per share and has a dividend yield of 1.7%. Landstar System pays an annual dividend of $1.76 per share and has a dividend yield of 1.1%. Kuehne & Nagel International pays out 50.5% of its earnings in the form of a dividend. Landstar System pays out 45.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Landstar System has increased its dividend for 10 consecutive years.

Institutional & Insider Ownership

98.0% of Landstar System shares are owned by institutional investors. 0.7% of Landstar System shares are owned by company 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.

Earnings and Valuation

This table compares Kuehne & Nagel International and Landstar System”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuehne & Nagel International	$29.53 billion	1.10	$1.06 billion	$1.84	29.15
Landstar System	$4.74 billion	1.19	$115.01 million	$3.86	43.26

Kuehne & Nagel International has higher revenue and earnings than Landstar System. Kuehne & Nagel International is trading at a lower price-to-earnings ratio than Landstar System, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kuehne & Nagel International and Landstar System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kuehne & Nagel International	3.57%	39.21%	7.28%
Landstar System	2.64%	20.84%	10.42%

Risk and Volatility

Kuehne & Nagel International has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Landstar System has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Kuehne & Nagel International and Landstar System, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuehne & Nagel International	2	2	2	0	2.00
Landstar System	2	11	3	1	2.18

Landstar System has a consensus price target of $191.14, indicating a potential upside of 14.47%. Given Landstar System’s stronger consensus rating and higher probable upside, analysts plainly believe Landstar System is more favorable than Kuehne & Nagel International.

Summary

Landstar System beats Kuehne & Nagel International on 13 of the 18 factors compared between the two stocks.

About Kuehne & Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.

About Landstar System

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.