Analyzing Roadrunner Transportation Systems (OTCMKTS:RRTS) and Marten Transport (NASDAQ:MRTN)

Marten Transport (NASDAQ:MRTN) and Roadrunner Transportation Systems (OTCMKTS:RRTS) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for Marten Transport and Roadrunner Transportation Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marten Transport	0	1	1	0	2.50
Roadrunner Transportation Systems	0	0	0	0	0.00

Marten Transport currently has a consensus target price of $19.00, indicating a potential upside of 40.95%. Given Marten Transport’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Marten Transport is more favorable than Roadrunner Transportation Systems.

Profitability

This table compares Marten Transport and Roadrunner Transportation Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marten Transport	2.31%	2.82%	2.18%
Roadrunner Transportation Systems	N/A	N/A	N/A

Volatility and Risk

Marten Transport has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Roadrunner Transportation Systems has a beta of 3.82, meaning that its stock price is 282% more volatile than the S&P 500.

Valuation & Earnings

This table compares Marten Transport and Roadrunner Transportation Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marten Transport	$963.71 million	1.14	$26.92 million	$0.27	49.93
Roadrunner Transportation Systems	$32.72 million	3.05	-$2.09 million	N/A	N/A

Marten Transport has higher revenue and earnings than Roadrunner Transportation Systems.

Institutional and Insider Ownership

69.1% of Marten Transport shares are held by institutional investors. Comparatively, 0.0% of Roadrunner Transportation Systems shares are held by institutional investors. 22.9% of Marten Transport shares are held by insiders. Comparatively, 0.7% of Roadrunner Transportation Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Marten Transport beats Roadrunner Transportation Systems on 10 of the 12 factors compared between the two stocks.

About Marten Transport

Marten Transport, Ltd. operates as a temperature-sensitive truckload carrier for shippers in the United State, Mexico, and Canada. The company operates through four segments: Truckload, Dedicated, Intermodal, and Brokerage. The Truckload segment transports food and other consumer packaged goods that require a temperature-controlled or insulated environment, as well as dry freight; and regional short-haul and medium-to-long-haul full-load transportation services. The Dedicated segment offers customized transportation solutions for individual customers' requirements using temperature-controlled trailers, dry vans, and other specialized equipment. The Intermodal segment transports customers' freight utilizing its refrigerated containers and temperature-controlled trailers on railroad flatcars for portions of trips, as well as using tractors and contracted carriers. The Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for customers in temperature-controlled trailers and dry vans. As of December 31, 2023, the company operated a fleet of 3,349 tractors, that included 3,255 company-owned tractors and 94 tractors supplied by independent contractors. Marten Transport, Ltd. was founded in 1946 and is headquartered in Mondovi, Wisconsin.

About Roadrunner Transportation Systems

Roadrunner Transportation Systems, Inc. provides asset-right transportation and asset-light logistics services. It operates through four segments: Ascent Transportation Management (Ascent TM), Ascent On-Demand (Ascent OD), Less-than-Truckload (LTL), and Truckload (TL). The company offers domestic freight management solutions, including asset-backed truckload brokerage, specialized/heavy haul, LTL shipment execution, LTL carrier rate negotiations, access to its transportation management system, and freight audit/payment. It also provides air and ground expedite services for the transportation of automotive and industrial parts, paper products, and steel, as well as frozen and refrigerated foods, including dairy, poultry and meat, and consumers products, such as foods and beverages. In addition, the company arranges the pickup and delivery of TL freight through its 30 TL service centers in the United States; offers dry van truckload, temperature-controlled truckload, and logistics and warehouse services; and provides pickup, consolidation, linehaul, deconsolidation, and delivery of LTL shipments in the United States and Canada through 27 LTL service centers and approximately 140 third-party delivery agents. Further, the company provides international air and ocean freight forwarding, customs brokerage, regulatory compliance, project and order management, and retail consolidation services. It operates through a network of independent brokerage agents, direct sales force, company brokers, and commissioned sales representatives. The company offers its services under the Roadrunner and Ascent Global Logistics brands. Roadrunner Transportation Systems, Inc. was incorporated in 2005 and is headquartered in Downers Grove, Illinois.