Critical Analysis: Mullen Group (OTCMKTS:MLLGF) & Yellow (NASDAQ:YELL)

Yellow (NASDAQ:YELL) and Mullen Group (OTCMKTS:MLLGF) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Profitability

This table compares Yellow and Mullen Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yellow	-1.65%	-6.10%	-3.54%
Mullen Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Yellow and Mullen Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yellow	$4.85 billion	0.02	$21.80 million	($1.55)	-1.00
Mullen Group	N/A	N/A	N/A	$1.00	10.38

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

Insider and Institutional Ownership

35.7% of Yellow shares are held by institutional investors. Comparatively, 55.0% of Mullen Group shares are held by institutional investors. 4.2% of Yellow shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Yellow and Mullen Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yellow	0	2	0	0	2.00
Mullen Group	0	3	1	0	2.25

Yellow currently has a consensus price target of $2.75, suggesting a potential upside of 77.42%. Mullen Group has a consensus price target of $14.96, suggesting a potential upside of 44.72%. Given Yellow’s higher possible upside, analysts plainly believe Yellow is more favorable than Mullen Group.

Summary

Mullen Group beats Yellow on 8 of the 11 factors compared between the two stocks.

About Yellow

Yellow Corporation, through its subsidiaries, provides various transportation services primarily in North America. The company primarily offers less-than-truckload (LTL) shipments and supply chain solutions to ship industrial, commercial, and retail goods. It also provides customer-specific logistics solutions, including truckload, residential, and warehouse solutions, as well as apparels, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal, metal products, non-bulk petroleum products, rubber, textiles, wood, and other manufactured products or components. In addition, the company offers specialized services, such as guaranteed expedited, time-specific delivery, cross-border, exhibit, product return, and government material shipment services; and consolidation and distribution, reverse logistics, and residential white glove services. As of December 31, 2022, it had a fleet of approximately 12,700 tractors comprising 11,700 owned and 1,000 leased tractors; and approximately 42,000 trailers consisting of 34,800 owned and 7,200 leased trailers. The company was formerly known as YRC Worldwide Inc. and changed its name to Yellow Corporation in February 2021. Yellow Corporation was founded in 1924 and is based in Nashville, Tennessee. On August 6, 2023, Yellow Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

About Mullen Group

Mullen Group Ltd. provides a range of trucking and logistics services in Canada and the United States. The Less-Than-Truckload segment delivers general freight consisting of smaller shipments, packages, and parcels; and pharmaceutical and package products. The Logistics & Warehousing segment offers full truckload, specialized transportation, warehousing, and fulfillment centers that handle ecommerce transactions and transload facilities for intermodal and bulk shipments; technology solutions, including transportation management, inventory management, and warehouse management systems; and warehousing and distribution services. The Specialized & Industrial Services segment provides production services, well servicing, production fluid transportation, transportation of fluids for disposal, frac support, hydrovac excavation, and industrial cleaning and turnaround services; and specialized services comprising dredging and dewatering services, large diameter pipe stockpiling and stringing services, water management, environmental services, civil construction, municipal development and emergency services, hydrostatic testing services to the pipeline industry and midstream sector, and transporting of oversize and overweight shipments, as well as deals in original equipment manufacturer parts and services. This segment also offers drilling and drilling related services, consisting of transportation, handling, and storage of oilfield fluids, tubulars, and drilling mud; drilling rig relocation; general oilfield hauling; well disposal facility; core drilling; setting surface casing; and conductor pipe setting services. The U.S. & International Logistics segment provides logistics services through professional representatives and station agents. This segment also owns SilverExpress, a proprietary integrated transportation management platform. The company was founded in 1949 and is headquartered in Okotoks, Canada.