YRC Worldwide (NASDAQ: YRCW) and USA Truck (NASDAQ:USAK) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
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This is a summary of recent recommendations and price targets for YRC Worldwide and USA Truck, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
YRC Worldwide presently has a consensus target price of $20.00, suggesting a potential upside of 94.36%. USA Truck has a consensus target price of $30.50, suggesting a potential upside of 26.09%. Given YRC Worldwide’s higher possible upside, equities research analysts plainly believe YRC Worldwide is more favorable than USA Truck.
Volatility & Risk
YRC Worldwide has a beta of 3.99, indicating that its share price is 299% more volatile than the S&P 500. Comparatively, USA Truck has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.
Insider and Institutional Ownership
79.2% of YRC Worldwide shares are held by institutional investors. Comparatively, 71.1% of USA Truck shares are held by institutional investors. 4.7% of YRC Worldwide shares are held by insiders. Comparatively, 3.5% of USA Truck shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares YRC Worldwide and USA Truck’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares YRC Worldwide and USA Truck’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|YRC Worldwide||$4.89 billion||0.07||-$10.80 million||$0.15||68.60|
|USA Truck||$446.53 million||0.45||$7.49 million||($0.56)||-43.20|
USA Truck has lower revenue, but higher earnings than YRC Worldwide. USA Truck is trading at a lower price-to-earnings ratio than YRC Worldwide, indicating that it is currently the more affordable of the two stocks.
YRC Worldwide beats USA Truck on 8 of the 13 factors compared between the two stocks.
YRC Worldwide Company Profile
YRC Worldwide Inc., through its subsidiaries, provides various transportation services primarily in North America. Its YRC Freight segment offers various services to transport industrial, commercial, and retail goods; and provides specialized services, including guaranteed expedited services, time-specific deliveries, cross-border services, coast-to-coast air delivery, product returns, temperature-sensitive shipment protection, and government material shipments. It serves manufacturing, wholesale, retail, and government customers. As of December 31, 2017, this segment had a fleet of approximately 7,600 tractors comprising 5,900 owned and 1,700 leased; and 30,900 trailers consisting of 23,800 owned and 7,100 leased. The company's Regional Transportation segment provides regional delivery services, which include next-day local area delivery and second-day services, consolidation/distribution services, protect-from-freezing and hazardous materials handling, truck loading, and other specialized offerings; guaranteed and expedited delivery services consisting of day-definite, hour-definite, and time definite capabilities; interregional delivery services; and cross-border delivery services, as well as operates hollandregional.com, newpenn.com, and reddawayregional.com, which are e-commerce Websites offering online resources to manage transportation activities. This segment had a fleet of approximately 6,500 tractors, including 4,700 owned and 1,800 leased; and 13,700 trailers comprising 10,500 owned and 3,200 leased. The company was formerly known as Yellow Roadway Corporation and changed its name to YRC Worldwide Inc. in January 2006. YRC Worldwide Inc. was founded in 1924 and is headquartered in Overland Park, Kansas.
USA Truck Company Profile
USA Truck, Inc., a truckload carrier, provides general commodities transportation services in the United States, Mexico, and Canada. It operates through two segments, Trucking and USAT Logistics. The Trucking segment offers truckload services as a medium to long-haul common carrier; and dedicated freight services. The USAT Logistics segment provides freight brokerage and rail intermodal services. As of December 31, 2017, the company's fleet consisted of 1,669 tractors, which included 247 independent contractor tractors; and 5,596 trailers. USA Truck, Inc. was founded in 1983 and is headquartered in Van Buren, Arkansas.