Critical Comparison: C.H. Robinson Worldwide (NASDAQ:CHRW) & United Parcel Service (NYSE:UPS)

United Parcel Service (NYSE:UPS) and C.H. Robinson Worldwide (NASDAQ:CHRW) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, risk, dividends and valuation.

Insider & Institutional Ownership

60.3% of United Parcel Service shares are held by institutional investors. Comparatively, 93.2% of C.H. Robinson Worldwide shares are held by institutional investors. 0.2% of United Parcel Service shares are held by insiders. Comparatively, 0.4% of C.H. Robinson Worldwide shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

United Parcel Service pays an annual dividend of $6.56 per share and has a dividend yield of 6.8%. C.H. Robinson Worldwide pays an annual dividend of $2.52 per share and has a dividend yield of 1.7%. United Parcel Service pays out 121.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. C.H. Robinson Worldwide pays out 48.1% of its earnings in the form of a dividend. United Parcel Service has raised its dividend for 16 consecutive years and C.H. Robinson Worldwide has raised its dividend for 27 consecutive years.

Profitability

This table compares United Parcel Service and C.H. Robinson Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Parcel Service	5.08%	37.50%	8.21%
C.H. Robinson Worldwide	3.73%	38.36%	12.63%

Valuation & Earnings

This table compares United Parcel Service and C.H. Robinson Worldwide”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Parcel Service	$88.66 billion	0.92	$5.57 billion	$5.38	17.84
C.H. Robinson Worldwide	$16.23 billion	1.07	$587.08 million	$5.24	28.44

United Parcel Service has higher revenue and earnings than C.H. Robinson Worldwide. United Parcel Service 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.

Volatility and Risk

United Parcel Service has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for United Parcel Service and C.H. Robinson Worldwide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Parcel Service	1	11	8	1	2.43
C.H. Robinson Worldwide	1	6	17	1	2.72

United Parcel Service currently has a consensus price target of $117.41, indicating a potential upside of 22.31%. C.H. Robinson Worldwide has a consensus price target of $196.56, indicating a potential upside of 31.88%. Given C.H. Robinson Worldwide’s stronger consensus rating and higher possible upside, analysts plainly believe C.H. Robinson Worldwide is more favorable than United Parcel Service.

Summary

C.H. Robinson Worldwide beats United Parcel Service on 11 of the 17 factors compared between the two stocks.

About United Parcel Service

United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services comprising guaranteed time-definite express options in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The company also offers international air and ocean freight forwarding, post-sales, and mail and consulting services. In addition, it provides truckload and customs brokerage services; supply chain solutions to the healthcare and life sciences industries; fulfillment and transportation management services; and integrated supply chain and shipment insurance solutions. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.

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.