Financial Contrast: Royal Mail (OTCMKTS:ROYMY) vs. C.H. Robinson Worldwide (NASDAQ:CHRW)

Royal Mail (OTCMKTS:ROYMY) and C.H. Robinson Worldwide (NASDAQ:CHRW) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Profitability

This table compares Royal Mail and C.H. Robinson Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Royal Mail	N/A	N/A	N/A
C.H. Robinson Worldwide	3.14%	35.01%	11.23%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Royal Mail and C.H. Robinson Worldwide, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Mail	0	0	0	0	0.00
C.H. Robinson Worldwide	1	6	14	1	2.68

C.H. Robinson Worldwide has a consensus target price of $119.38, indicating a potential downside of 9.47%. Given C.H. Robinson Worldwide’s stronger consensus rating and higher possible upside, analysts plainly believe C.H. Robinson Worldwide is more favorable than Royal Mail.

Earnings & Valuation

This table compares Royal Mail and C.H. Robinson Worldwide”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Mail	$15.94 billion	0.26	$67.88 million	N/A	N/A
C.H. Robinson Worldwide	$17.72 billion	0.88	$465.69 million	$4.39	30.04

C.H. Robinson Worldwide has higher revenue and earnings than Royal Mail.

Dividends

Royal Mail pays an annual dividend of $0.05 per share and has a dividend yield of 0.6%. C.H. Robinson Worldwide pays an annual dividend of $2.48 per share and has a dividend yield of 1.9%. C.H. Robinson Worldwide pays out 56.5% of its earnings in the form of a dividend. C.H. Robinson Worldwide has raised its dividend for 27 consecutive years. C.H. Robinson Worldwide is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

93.2% of C.H. Robinson Worldwide shares are owned by institutional investors. 0.9% of C.H. Robinson Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Royal Mail has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Summary

C.H. Robinson Worldwide beats Royal Mail on 14 of the 16 factors compared between the two stocks.

About Royal Mail

International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider in the United Kingdom and internationally. The company offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. It also provides services for the collection, sorting, and delivery of parcels and letters. In addition, the company operates ground-based parcel delivery networks in Europe that covers 40 countries and nation states. Further, it provides express parcel delivery and logistics services. Additionally, the company engages in property holdings and facilities management activities. It serves consumers, and small and medium-sized enterprises. The company was formerly known as Royal Mail plc and changed its name to International Distributions Services plc in October 2022. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom.

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.