Swift Transportation (NYSE: SWFT) and ArcBest Corporation (NASDAQ:ARCB) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitabiliy, risk and earnings.

Insider & Institutional Ownership

75.2% of Swift Transportation shares are held by institutional investors. Comparatively, 86.4% of ArcBest Corporation shares are held by institutional investors. 44.9% of Swift Transportation shares are held by insiders. Comparatively, 1.0% of ArcBest Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

ArcBest Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Swift Transportation does not pay a dividend. ArcBest Corporation pays out 37.2% of its earnings in the form of a dividend.

Risk and Volatility

Swift Transportation has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500. Comparatively, ArcBest Corporation has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Swift Transportation and ArcBest Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Swift Transportation 0 6 10 0 2.63
ArcBest Corporation 0 5 2 0 2.29

Swift Transportation currently has a consensus price target of $27.85, suggesting a potential upside of 5.80%. ArcBest Corporation has a consensus price target of $25.50, suggesting a potential downside of 1.54%. Given Swift Transportation’s stronger consensus rating and higher possible upside, analysts plainly believe Swift Transportation is more favorable than ArcBest Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Swift Transportation 2.99% 22.23% 5.56%
ArcBest Corporation 0.83% 4.92% 2.26%

Valuation and Earnings

This table compares Swift Transportation and ArcBest Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Swift Transportation $4.01 billion 0.88 $480.95 million $0.90 29.24
ArcBest Corporation $2.77 billion 0.24 $146.23 million $0.86 30.12

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

Summary

Swift Transportation beats ArcBest Corporation on 14 of the 16 factors compared between the two stocks.

Swift Transportation Company Profile

Swift Transportation Company is a multi-faceted transportation services company. As of December 31, 2016, the Company operated fleets of truckload equipment in North America from over 40 terminals near key freight centers and traffic lanes. The Company’ segments include Truckload, Dedicated, Swift Refrigerated and Intermodal. The Company’s other segments include its logistics and freight brokerage services, as well as support services that its subsidiaries provide to customers and owner-operators, including repair and maintenance shop services, equipment leasing, and insurance. As of December 31, 2016, the Company’s fleet consisted of 13,937 company tractors and 4,429 owner-operator tractors, as well as 64,066 trailers, and 9,131 intermodal containers. Its suite of service offerings include line-haul services, dedicated customer contracts, temperature-controlled units, intermodal freight solutions, flatbed hauling, freight brokerage and logistics.

ArcBest Corporation Company Profile

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.

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