Critical Survey: Heartland Express (NASDAQ:HTLD) versus Saia (SAIA)

Heartland Express (NASDAQ: HTLD) and Saia (NASDAQ:SAIA) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitabiliy, institutional ownership, valuation and earnings.

Risk and Volatility

Heartland Express has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Saia has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Earnings & Valuation

This table compares Heartland Express and Saia’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Heartland Express	$580.05 million	3.02	$173.50 million	$0.68	30.94
Saia	$1.29 billion	1.08	$168.48 million	$2.06	26.55

Heartland Express has higher revenue, but lower earnings than Saia. Saia is trading at a lower price-to-earnings ratio than Heartland Express, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Heartland Express and Saia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heartland Express	9.66%	11.20%	7.54%
Saia	3.92%	10.27%	5.80%

Dividends

Heartland Express pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Saia does not pay a dividend. Heartland Express pays out 11.8% of its earnings in the form of a dividend.

Insider & Institutional Ownership

60.3% of Heartland Express shares are held by institutional investors. Comparatively, 97.6% of Saia shares are held by institutional investors. 42.1% of Heartland Express shares are held by company insiders. Comparatively, 1.5% of Saia 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.

Analyst Ratings

This is a summary of recent ratings for Heartland Express and Saia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heartland Express	2	10	1	0	1.92
Saia	0	2	4	0	2.67

Heartland Express currently has a consensus target price of $15.11, indicating a potential downside of 28.18%. Saia has a consensus target price of $52.50, indicating a potential downside of 4.02%. Given Saia’s stronger consensus rating and higher probable upside, analysts plainly believe Saia is more favorable than Heartland Express.

About Heartland Express

Heartland Express, Inc. is a holding company. The Company is a short-to-medium haul truckload carrier. The Company focuses primarily on short- to medium-haul, asset-based dry van truckload services in regional markets near its terminals. The Company’s truckload services are primarily asset-based transportation services in the dry van truckload market, and it also offers truckload temperature-controlled transportation services and non-asset based brokerage services. All tractors are equipped with mobile communication systems. Its primary customers include retailers and manufacturers. It provides nationwide asset-based dry van truckload service for shippers from Washington to Florida and New England to California. The Company provides truckload services across the United States and parts of Canada. As of December 31, 2016, it had operated 20 terminal facilities throughout the contiguous United States in addition to its terminal and corporate headquarters in North Liberty, Iowa.

About Saia

Saia, Inc. is a transportation company. The Company provides regional and interregional less-than-truckload (LTL) services. The Company also offers a range of other value-added services, including non-asset truckload, expedited and logistics services across the United States. The Company’s subsidiary Saia Motor Freight Line, LLC (Saia LTL Freight) is a LTL carrier. As of December 31, 2016, Saia LTL Freight had served 34 states in the South, Southwest, Midwest, Pacific Northwest and West. Saia LTL Freight specializes in offering its customers a range of regional and interregional LTL services, including time-definite and expedited options. As of December 31, 2016, Saia LTL Freight operated a network consisting of 151 owned and leased locations. The Company’s other subsidiaries include Saia TL Plus, LLC, Saia Logistics Services, LLC, Saia Sales, LLC, Saia Metrogo, LLC, LinkEx, Inc. and Saia Motor Freight Mexico, S. DE R.L. DE C.V.