Quality Distribution (QLTY) versus Ryder System (R) Financial Review

Quality Distribution (NASDAQ: QLTY) and Ryder System (NYSE:R) are both ground freight & logistics – nec companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Earnings and Valuation

This table compares Quality Distribution and Ryder System’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Quality Distribution N/A N/A N/A $0.38 42.05
Ryder System $6.79 billion 0.66 $262.47 million $3.69 22.81

Ryder System has higher revenue and earnings than Quality Distribution. Ryder System is trading at a lower price-to-earnings ratio than Quality Distribution, indicating that it is currently the more affordable of the two stocks.

Dividends

Ryder System pays an annual dividend of $1.84 per share and has a dividend yield of 2.2%. Quality Distribution does not pay a dividend. Ryder System pays out 49.9% of its earnings in the form of a dividend. Quality Distribution has increased its dividend for 8 consecutive years.

Volatility and Risk

Quality Distribution has a beta of 2.83, meaning that its share price is 183% more volatile than the S&P 500. Comparatively, Ryder System has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Quality Distribution and Ryder System, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Quality Distribution 0 0 0 0 N/A
Ryder System 0 4 4 0 2.50

Ryder System has a consensus target price of $83.83, indicating a potential downside of 0.40%. Given Ryder System’s higher possible upside, analysts plainly believe Ryder System is more favorable than Quality Distribution.

Institutional & Insider Ownership

89.4% of Ryder System shares are held by institutional investors. 2.0% of Ryder System shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Quality Distribution and Ryder System’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Quality Distribution 0.95% N/A 2.09%
Ryder System 2.75% 10.72% 2.04%

Summary

Ryder System beats Quality Distribution on 9 of the 14 factors compared between the two stocks.

About Quality Distribution

Quality Distribution Inc. is a United States-based provider of bulk transportation and logistics services. The Company also provides transportation and delivery services. The Company offers services, such as chemical bulk transportation, logistics, container and depot, intermodal, leasing and risk services. Its container and depot services for intermodal equipment include repair, maintenance and cleaning, and redistribution. Its intermodal services include tracking solutions, solutions regarding capacity, pre-clearing for shipments moving across borders, and management and control over every shipping segment from departure to delivery. It offers risk management consulting that covers insurance policy reviews, insurance or self-insurance analysis and brokerage relationship studies. It also offers audit services, electronic or on-site. It serves industries, including chemical, unconventional oil and gas, bulk liquid and food grade liquid.

About Ryder System

Ryder System, Inc. is engaged in offering transportation and supply chain management solutions. The Company operates through three segments: Fleet Management Solutions (FMS), which provides leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the United States, Canada and the United Kingdom; Dedicated Transportation Solutions (DTS), which provides vehicles and drivers as part of a dedicated transportation solution in the United States, and Supply Chain Solutions (SCS), which provides supply chain solutions, including distribution and transportation services in North America and Asia. Through its FMS business, the Company provides its customers with various fleet solutions. In addition, it provides its customers to purchase a selection of used trucks, tractors and trailers through its used vehicle sales program. Its customer base includes enterprises operating in various industries.

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