Forward Air (NASDAQ:FWRD – Get Free Report) and ArcBest (NASDAQ:ARCB – Get Free Report) are both small-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
Analyst Ratings
This is a summary of current ratings for Forward Air and ArcBest, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Forward Air | 0 | 2 | 3 | 0 | 2.60 |
| ArcBest | 1 | 7 | 6 | 0 | 2.36 |
Forward Air currently has a consensus price target of $37.75, indicating a potential upside of 25.71%. ArcBest has a consensus price target of $90.00, indicating a potential upside of 22.02%. Given Forward Air’s stronger consensus rating and higher possible upside, equities analysts clearly believe Forward Air is more favorable than ArcBest.
Risk and Volatility
Profitability
This table compares Forward Air and ArcBest’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Forward Air | -6.86% | -40.36% | -3.77% |
| ArcBest | 3.90% | 8.67% | 4.66% |
Insider & Institutional Ownership
97.0% of Forward Air shares are owned by institutional investors. Comparatively, 99.3% of ArcBest shares are owned by institutional investors. 17.2% of Forward Air shares are owned by company insiders. Comparatively, 1.3% of ArcBest shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Forward Air and ArcBest”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Forward Air | $2.47 billion | 0.37 | -$816.97 million | ($5.99) | -5.01 |
| ArcBest | $4.18 billion | 0.40 | $173.96 million | $6.72 | 10.98 |
ArcBest has higher revenue and earnings than Forward Air. Forward Air is trading at a lower price-to-earnings ratio than ArcBest, indicating that it is currently the more affordable of the two stocks.
Summary
ArcBest beats Forward Air on 11 of the 14 factors compared between the two stocks.
About Forward Air
Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United States and Canada. It operates in two segments, Expedited Freight and Intermodal. The Expedited Freight segment provides expedited regional, inter-regional, and national less-than-truckload services; local pick-up and delivery services; and other services, which include shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling. This segment offers expedited truckload brokerage, dedicated fleet, and high security and temperature-controlled logistics services. The Intermodal segment provides intermodal container drayage services; and contract and container freight station warehouse and handling services. It serves freight forwarders, third-party logistics companies, integrated air cargo carriers and passenger, passenger and cargo airlines, steamship lines, and retailers. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.
About ArcBest
ArcBest Corporation, an integrated logistics company, engages in the provision of ground, air, and ocean transportation solutions. It operates through two segments: Asset-Based and Asset-Light. The Asset-Based segment provides less-than-truckload (LTL) services, that transports general commodities, such as food, textiles, apparel, furniture, appliances, chemicals, non-bulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery, and miscellaneous manufactured products. The segment also offers motor carrier freight transportation services to customers in Mexico through arrangements with trucking companies. The Asset-Light segment provides ground expedite services; third-party transportation brokerage services by sourcing various capacity solutions, including dry van over-the-road, temperature-controlled and refrigerated, flatbed, intermodal or container shipping, and specialized equipment; less-than- and full container load ocean transportation services; warehousing and distribution services; managed transportation services; and moving services to do-it-yourself' consumer, as well as provides final mile, time critical, product launch, retail logistics, supply chain optimization, and trade show shipping services. This segment also offers premium logistics services, such as deployment of specialized equipment to meet linehaul requirements; international freight transportation with air, ocean, and ground services; and engages in the final mile, time-critical, product launch, retail logistics, supply chain optimization, brokered LTL, and trade show shipping activities. The company was formerly known as Arkansas Best Corporation and changed its name to ArcBest Corporation in May 2014. ArcBest Corporation was founded in 1923 and is headquartered in Fort Smith, Arkansas.
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