Critical Review: C.H. Robinson Worldwide (NASDAQ:CHRW) & DHL Group (OTCMKTS:DHLGY)

C.H. Robinson Worldwide (NASDAQ:CHRW) and DHL Group (OTCMKTS:DHLGY) are both large-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Dividends

C.H. Robinson Worldwide pays an annual dividend of $2.48 per share and has a dividend yield of 2.1%. DHL Group pays an annual dividend of $1.46 per share and has a dividend yield of 3.1%. C.H. Robinson Worldwide pays out 56.5% of its earnings in the form of a dividend. DHL Group pays out 45.1% 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. C.H. Robinson Worldwide has raised its dividend for 27 consecutive years. DHL Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares C.H. Robinson Worldwide and DHL Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C.H. Robinson Worldwide	$17.72 billion	0.77	$465.69 million	$4.39	26.48
DHL Group	$91.11 billion	0.62	$3.61 billion	$3.24	14.54

DHL Group has higher revenue and earnings than C.H. Robinson Worldwide. DHL Group is trading at a lower price-to-earnings ratio than C.H. Robinson Worldwide, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

C.H. Robinson Worldwide has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, DHL Group has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for C.H. Robinson Worldwide and DHL Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C.H. Robinson Worldwide	1	6	14	1	2.68
DHL Group	2	1	0	1	2.00

C.H. Robinson Worldwide currently has a consensus price target of $116.3333, suggesting a potential upside of 0.08%. Given C.H. Robinson Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe C.H. Robinson Worldwide is more favorable than DHL Group.

Profitability

This table compares C.H. Robinson Worldwide and DHL Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C.H. Robinson Worldwide	3.14%	35.01%	11.23%
DHL Group	4.11%	14.68%	5.03%

Insider & Institutional Ownership

93.2% of C.H. Robinson Worldwide shares are owned by institutional investors. 0.9% of C.H. Robinson Worldwide shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

C.H. Robinson Worldwide beats DHL Group on 11 of the 17 factors compared between the two stocks.

About C.H. Robinson Worldwide

C.H. Robinson Worldwide, Inc., together with its subsidiaries, provides freight transportation services, and related logistics and supply chain services in the United States and internationally. It operates through two segments: North American Surface Transportation and Global Forwarding. The company offers transportation and logistics services, such as truckload, less than truckload transportation brokerage services, which include the shipment of single or multiple pallets of freight; intermodal transportation that comprises the shipment service of freight in containers or trailers by a combination of truck and rail; and non-vessel operating common carrier and freight forwarding services, as well as organizes air shipments and provides door-to-door services. It also provides customs brokerage services; and other logistics services, such as fee-based managed, warehousing, small parcel, and other services. It has contractual relationships with approximately 45,000 transportation companies, including motor carriers, railroads, and ocean and air carriers. In addition, the company is involved in the buying, selling, and/or marketing of fresh fruits, vegetables, and other value-added perishable items under the Robinson Fresh brand name. Further, the company offers transportation management services or managed TMS; and other surface transportation services. It provides its fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors through a network of independent produce growers and suppliers. The company was founded in 1905 and is headquartered in Eden Prairie, Minnesota.

About DHL Group

Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.