Werner Enterprises (NASDAQ: WERN) and Marten Transport (NASDAQ:MRTN) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitabiliy, risk, analyst recommendations, dividends and institutional ownership.
Valuation & Earnings
This table compares Werner Enterprises and Marten Transport’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Werner Enterprises||$2.05 billion||1.06||$324.61 million||$1.10||27.27|
|Marten Transport||$687.80 million||1.30||$134.37 million||$0.63||26.12|
Werner Enterprises has higher revenue and earnings than Marten Transport. Marten Transport is trading at a lower price-to-earnings ratio than Werner Enterprises, indicating that it is currently the more affordable of the two stocks.
This table compares Werner Enterprises and Marten Transport’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Werner Enterprises has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Marten Transport has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
This is a summary of current recommendations for Werner Enterprises and Marten Transport, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Werner Enterprises currently has a consensus price target of $28.25, indicating a potential downside of 5.83%. Marten Transport has a consensus price target of $15.00, indicating a potential downside of 8.26%. Given Werner Enterprises’ higher possible upside, research analysts plainly believe Werner Enterprises is more favorable than Marten Transport.
Institutional and Insider Ownership
66.2% of Werner Enterprises shares are owned by institutional investors. Comparatively, 41.0% of Marten Transport shares are owned by institutional investors. 34.8% of Werner Enterprises shares are owned by insiders. Comparatively, 23.0% of Marten Transport shares are owned 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.
Werner Enterprises pays an annual dividend of $0.28 per share and has a dividend yield of 0.9%. Marten Transport pays an annual dividend of $0.06 per share and has a dividend yield of 0.4%. Werner Enterprises pays out 25.5% of its earnings in the form of a dividend. Marten Transport pays out 9.6% 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.
Werner Enterprises beats Marten Transport on 10 of the 15 factors compared between the two stocks.
Werner Enterprises Company Profile
Werner Enterprises, Inc. is a transportation and logistics company. The Company is engaged in transporting truckload shipments of general commodities in both interstate and intrastate commerce. It operates through two segments: Truckload and Werner Logistics. It provides logistics services through its Werner Logistics division. As of December 31, 2016, it had a fleet of approximately 7,100 trucks, of which 6,305 were company-operated and 795 were owned and operated by independent contractors. Its Werner Logistics division operated 74 intermodal drayage trucks as of December 31, 2016. Its Truckload segment comprises the One-Way Truckload and Specialized Services units. It operates in several provinces of Canada to provide through-trailer service into and out of Mexico. Its Werner Logistic segment is a non-asset-based transportation and logistics provider and comprises four operating units: truck brokerage, freight management, the intermodal and Werner Global Logistics international.
Marten Transport Company Profile
Marten Transport, Ltd. is a temperature-sensitive truckload carrier. The Company focuses on transporting and distributing food and other consumer-packaged goods that require a temperature-controlled or insulated environment. The Company operates through four segments: Truckload, Dedicated, Intermodal and Brokerage. It operates throughout the United States and in parts of Canada and Mexico. The Company’s medium-to-long-haul traffic lanes are between the Midwest and the West Coast, Southwest, Southeast, and the East Coast, as well as from California to the Pacific Northwest. It provides regional truckload carrier services in the Southeast, West Coast, Midwest, South Central and Northeast regions. It also offers loading and unloading activities, equipment detention and other ancillary services. The Company’s Truckload segment provides a combination of regional short-haul and medium-to-long-haul full-load transportation services.
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