Macquarie Infrastructure (NYSE: MIC) and Roadrunner Transportation Systems (NYSE:RRTS) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Insider and Institutional Ownership
81.3% of Macquarie Infrastructure shares are owned by institutional investors. Comparatively, 71.7% of Roadrunner Transportation Systems shares are owned by institutional investors. 5.9% of Macquarie Infrastructure shares are owned by company insiders. Comparatively, 25.8% of Roadrunner Transportation Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Macquarie Infrastructure and Roadrunner Transportation Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Roadrunner Transportation Systems||0||1||1||0||2.50|
Macquarie Infrastructure currently has a consensus target price of $89.33, indicating a potential upside of 34.99%. Roadrunner Transportation Systems has a consensus target price of $10.00, indicating a potential upside of 28.21%. Given Macquarie Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe Macquarie Infrastructure is more favorable than Roadrunner Transportation Systems.
Valuation and Earnings
This table compares Macquarie Infrastructure and Roadrunner Transportation Systems’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Macquarie Infrastructure||$1.65 billion||3.39||$156.38 million||$2.13||31.07|
|Roadrunner Transportation Systems||$2.00 billion||0.15||$48.00 million||$0.66||11.82|
Macquarie Infrastructure has higher revenue, but lower earnings than Roadrunner Transportation Systems. Roadrunner Transportation Systems is trading at a lower price-to-earnings ratio than Macquarie Infrastructure, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Macquarie Infrastructure has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Roadrunner Transportation Systems has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
Macquarie Infrastructure pays an annual dividend of $5.52 per share and has a dividend yield of 8.3%. Roadrunner Transportation Systems does not pay a dividend. Macquarie Infrastructure pays out 259.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macquarie Infrastructure has increased its dividend for 5 consecutive years.
This table compares Macquarie Infrastructure and Roadrunner Transportation Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Roadrunner Transportation Systems||N/A||N/A||N/A|
Macquarie Infrastructure beats Roadrunner Transportation Systems on 13 of the 17 factors compared between the two stocks.
Macquarie Infrastructure Company Profile
Macquarie Infrastructure Corporation owns and operates a group of businesses that provide services, such as bulk liquid terminalling and handling services. The Company operates through four segments: International-Matex Tank Terminals (IMTT), Atlantic Aviation, Contracted Power (CP) and MIC Hawaii. Its group of businesses also provides services, such as aircraft fueling, CP generation and utility gas services. Its group of businesses provides services to businesses, government agencies and individuals in the United States. IMTT segment provides bulk liquid terminal services in the United States. As of December 31, 2016, Atlantic Aviation operated Fixed based operations (FBOs) at 69 airports in the United States. The businesses in its CP segment sell electricity to off-takers, pursuant to multi-year contracts. MIC Hawaii segment consists of Hawaii Gas and several smaller businesses. Hawaii Gas consists of a gas utility and a liquefied petroleum gas (LPG) distribution business.
Roadrunner Transportation Systems Company Profile
Roadrunner Transportation Systems, Inc. (RRTS) is an asset-light transportation and logistics service provider. The Company offers a suite of global supply chain solutions, including truckload logistics (TL), customized and expedited less-than-truckload (LTL), intermodal solutions (transporting a shipment by over one mode, primarily through rail and truck), freight consolidation, inventory management, expedited services, air freight, international freight forwarding, customs brokerage and transportation management solutions. The Company operates through three segments: Truckload Logistics, Less-than-Truckload and Global Solutions. The Company utilizes a third-party network of transportation providers, consisting of independent contractors (ICs) and purchased power providers, to serve a diverse customer base. It primarily focuses on small to mid-size shippers.
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