Hennessy Capital Acquisition Corp. II (DSKE) and Old Dominion Freight Line (ODFL) Financial Survey

Hennessy Capital Acquisition Corp. II (NASDAQ: DSKE) and Old Dominion Freight Line (NASDAQ:ODFL) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Profitability

This table compares Hennessy Capital Acquisition Corp. II and Old Dominion Freight Line’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hennessy Capital Acquisition Corp. II N/A -24.73% -3.71%
Old Dominion Freight Line 10.19% 16.87% 11.61%

Dividends

Old Dominion Freight Line pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Hennessy Capital Acquisition Corp. II does not pay a dividend. Old Dominion Freight Line pays out 10.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Hennessy Capital Acquisition Corp. II and Old Dominion Freight Line’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hennessy Capital Acquisition Corp. II $682.32 million 0.71 $74.48 million N/A N/A
Old Dominion Freight Line $3.12 billion 2.79 $718.76 million $3.85 27.48

Old Dominion Freight Line has higher revenue and earnings than Hennessy Capital Acquisition Corp. II.

Volatility and Risk

Hennessy Capital Acquisition Corp. II has a beta of -0.2, indicating that its stock price is 120% less volatile than the S&P 500. Comparatively, Old Dominion Freight Line has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Hennessy Capital Acquisition Corp. II and Old Dominion Freight Line, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hennessy Capital Acquisition Corp. II 0 0 4 0 3.00
Old Dominion Freight Line 0 6 3 0 2.33

Hennessy Capital Acquisition Corp. II presently has a consensus price target of $13.67, indicating a potential upside of 6.77%. Old Dominion Freight Line has a consensus price target of $98.00, indicating a potential downside of 7.37%. Given Hennessy Capital Acquisition Corp. II’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Hennessy Capital Acquisition Corp. II is more favorable than Old Dominion Freight Line.

Insider & Institutional Ownership

19.6% of Hennessy Capital Acquisition Corp. II shares are owned by institutional investors. Comparatively, 73.8% of Old Dominion Freight Line shares are owned by institutional investors. 20.0% of Hennessy Capital Acquisition Corp. II shares are owned by insiders. Comparatively, 12.0% of Old Dominion Freight Line shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Old Dominion Freight Line beats Hennessy Capital Acquisition Corp. II on 9 of the 14 factors compared between the two stocks.

About Hennessy Capital Acquisition Corp. II

Daseke, Inc. is a consolidator of the open deck freight market in North America. The Company provides open deck transportation and logistics. It operates through two segments: Flatbed Solutions and Specialized Solutions. The Flatbed Solutions segment focuses on delivering transportation and logistics solutions that principally require the use of flatbed and retractable-sided transportation equipment. The Specialized Solutions segment focuses on delivering transportation and logistics solutions that principally include heavy haul, high-value customized, over-dimensional, step deck and removable gooseneck trailer solutions. The Company, as of September 5, 2017, had a fleet of over 3,800 trucks and over 8,200 flatbed and specialized trailer. The Company serves customers in the United States, Canada and Mexico.

About Old Dominion Freight Line

Old Dominion Freight Line, Inc. is a union-free motor carrier providing regional, inter-regional and national less-than-truckload (LTL) services. The Company’s LTL services include ground and air expedited transportation for time-sensitive shipments, consumer household pickup and delivery and freight delivery services throughout North America. In addition to its LTL services, the Company offers a range of other value-added services that include container drayage, truckload brokerage, supply chain consulting and warehousing. As of December 31, 2016, the Company operated 226 service center locations, of which it owned 182 and leased 44. As of December 31, 2016, its network included 10 breakbulk facilities located in Rialto, California; Atlanta, Georgia; Columbus, Ohio; Indianapolis, Indiana; Greensboro, North Carolina; Harrisburg, Pennsylvania; Memphis and Morristown, Tennessee; Dallas, Texas, and Salt Lake City, Utah. As of December 31, 2016, the Company owned 7,994 tractors.

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