Reviewing Landstar System (NASDAQ:LSTR) and Roadrunner Transportation Systems (OTCMKTS:RRTS)

Landstar System (NASDAQ:LSTR) and Roadrunner Transportation Systems (OTCMKTS:RRTS) are both transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

97.9% of Landstar System shares are owned by institutional investors. Comparatively, 0.0% of Roadrunner Transportation Systems shares are owned by institutional investors. 0.8% of Landstar System shares are owned by company insiders. Comparatively, 0.7% of Roadrunner Transportation Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Landstar System	3.51%	17.49%	9.61%
Roadrunner Transportation Systems	N/A	N/A	N/A

Risk & Volatility

Landstar System has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Roadrunner Transportation Systems has a beta of 3.79, meaning that its stock price is 279% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Landstar System and Roadrunner Transportation Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Landstar System	1	12	1	1	2.13
Roadrunner Transportation Systems	0	0	0	0	0.00

Landstar System presently has a consensus target price of $145.1667, suggesting a potential upside of 12.44%. Given Landstar System’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Landstar System is more favorable than Roadrunner Transportation Systems.

Earnings and Valuation

This table compares Landstar System and Roadrunner Transportation Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Landstar System	$4.79 billion	0.93	$195.95 million	$4.77	27.07
Roadrunner Transportation Systems	$32.72 million	2.93	-$2.09 million	N/A	N/A

Landstar System has higher revenue and earnings than Roadrunner Transportation Systems.

Summary

Landstar System beats Roadrunner Transportation Systems on 11 of the 13 factors compared between the two stocks.

About Landstar System

Landstar System, Inc. provides integrated transportation management solutions in the United States, Canada, Mexico, and internationally. It operates through two segments: Transportation Logistics and Insurance. The Transportation Logistics segment offers a range of transportation services, including truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, U.S.-Canada and U.S.-Mexico cross-border, intra-Mexico, intra-Canada, project cargo, and customs brokerage, as well as offers transportation services to other transportation companies, such as third party logistics and less-than-truckload services. It provides truck services through dry and specialty vans of various sizes, unsided/platform trailers, temperature-controlled vans, and containers; rail intermodal services through contracts with domestic and Canadian railroads, certain short-line railroads, and asset-based intermodal equipment; and domestic and international air and ocean services. This segment serves the automotive parts and assemblies, consumer durables, building products, metals, chemicals, foodstuffs, heavy machinery, retail, electronics, and military equipment industries. The Insurance segment provides risk and claims management services; and reinsures risks of the company's independent contractors. It markets its services through independent commission sales agents and third party capacity providers. Landstar System, Inc. was incorporated in 1991 and is headquartered in Jacksonville, Florida.

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.