C.H. Robinson Worldwide (NASDAQ:CHRW) and Expeditors International of Washington (NASDAQ:EXPD) are both large-cap transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Volatility and Risk
C.H. Robinson Worldwide has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Expeditors International of Washington has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Institutional & Insider Ownership
93.0% of C.H. Robinson Worldwide shares are held by institutional investors. Comparatively, 91.2% of Expeditors International of Washington shares are held by institutional investors. 1.8% of C.H. Robinson Worldwide shares are held by company insiders. Comparatively, 1.2% of Expeditors International of Washington shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares C.H. Robinson Worldwide and Expeditors International of Washington's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| C.H. Robinson Worldwide | $15.31 billion | 0.79 | $576.97 million | $4.19 | 21.68 |
| Expeditors International of Washington | $8.18 billion | 1.90 | $590.40 million | $3.45 | 26.62 |
Expeditors International of Washington has lower revenue, but higher earnings 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.
Analyst Recommendations
This is a breakdown of current ratings and target prices for C.H. Robinson Worldwide and Expeditors International of Washington, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| C.H. Robinson Worldwide | 2 | 9 | 6 | 0 | 2.24 |
| Expeditors International of Washington | 4 | 3 | 0 | 0 | 1.43 |
C.H. Robinson Worldwide currently has a consensus target price of $93.7647, indicating a potential upside of 3.21%. Expeditors International of Washington has a consensus target price of $83.3333, indicating a potential downside of 9.26%. Given C.H. Robinson Worldwide's stronger consensus rating and higher possible upside, research analysts clearly believe C.H. Robinson Worldwide is more favorable than Expeditors International of Washington.
Profitability
This table compares C.H. Robinson Worldwide and Expeditors International of Washington's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| C.H. Robinson Worldwide | 2.96% | 26.78% | 9.44% |
| Expeditors International of Washington | 7.06% | 28.55% | 16.53% |
Dividends
C.H. Robinson Worldwide pays an annual dividend of $2.04 per share and has a dividend yield of 2.2%. 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 out 48.7% of its earnings in the form of a dividend. Expeditors International of Washington pays out 30.1% 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. C.H. Robinson Worldwide has raised its dividend for 1 consecutive years and Expeditors International of Washington has raised its dividend for 25 consecutive years.
Summary
C.H. Robinson Worldwide beats Expeditors International of Washington on 9 of the 17 factors compared between the two stocks.
