Expeditors International of Washington (NASDAQ:EXPD) and C.H. Robinson Worldwide (NASDAQ:CHRW) are both large-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.
Profitability
This table compares Expeditors International of Washington and C.H. Robinson Worldwide's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Expeditors International of Washington | 7.06% | 28.55% | 16.53% |
| C.H. Robinson Worldwide | 2.96% | 26.78% | 9.44% |
Dividends
Expeditors International of Washington pays an annual dividend of $1.04 per share and has a dividend yield of 1.1%. C.H. Robinson Worldwide pays an annual dividend of $2.04 per share and has a dividend yield of 2.1%. Expeditors International of Washington pays out 30.1% of its earnings in the form of a dividend. C.H. Robinson Worldwide pays out 48.7% 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. Expeditors International of Washington has raised its dividend for 25 consecutive years and C.H. Robinson Worldwide has raised its dividend for 1 consecutive years.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Expeditors International of Washington and C.H. Robinson Worldwide, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Expeditors International of Washington | 4 | 4 | 0 | 0 | 1.50 |
| C.H. Robinson Worldwide | 3 | 9 | 5 | 0 | 2.12 |
Expeditors International of Washington currently has a consensus target price of $79.7143, indicating a potential downside of 14.99%. C.H. Robinson Worldwide has a consensus target price of $92.6875, indicating a potential downside of 5.23%. Given C.H. Robinson Worldwide's stronger consensus rating and higher possible upside, analysts clearly believe C.H. Robinson Worldwide is more favorable than Expeditors International of Washington.
Institutional & Insider Ownership
91.2% of Expeditors International of Washington shares are owned by institutional investors. Comparatively, 93.0% of C.H. Robinson Worldwide shares are owned by institutional investors. 1.2% of Expeditors International of Washington shares are owned by company insiders. Comparatively, 1.8% of C.H. Robinson Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Expeditors International of Washington has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.
Earnings & Valuation
This table compares Expeditors International of Washington and C.H. Robinson Worldwide's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Expeditors International of Washington | $8.18 billion | 1.94 | $590.40 million | $3.45 | 27.18 |
| C.H. Robinson Worldwide | $15.31 billion | 0.87 | $576.97 million | $4.19 | 23.34 |
Expeditors International of Washington has higher earnings, but lower revenue than C.H. Robinson Worldwide. C.H. Robinson Worldwide is trading at a lower price-to-earnings ratio than Expeditors International of Washington, indicating that it is currently the more affordable of the two stocks.
Summary
C.H. Robinson Worldwide beats Expeditors International of Washington on 9 of the 17 factors compared between the two stocks.
