Analyzing TFI International (NYSE:TFII) and Firstgroup (OTCMKTS:FGROY)

Firstgroup (OTCMKTS:FGROY) and TFI International (NYSE:TFII) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Firstgroup and TFI International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Firstgroup	0	0	0	0	0.00
TFI International	2	7	11	2	2.59

TFI International has a consensus target price of $111.27, suggesting a potential upside of 31.89%. Given TFI International’s stronger consensus rating and higher possible upside, analysts clearly believe TFI International is more favorable than Firstgroup.

Dividends

Firstgroup pays an annual dividend of $0.10 per share and has a dividend yield of 3.8%. TFI International pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. TFI International pays out 46.4% of its earnings in the form of a dividend.

Insider and Institutional Ownership

73.3% of TFI International shares are owned by institutional investors. 0.2% of Firstgroup shares are owned by company insiders. Comparatively, 5.5% of TFI International shares are owned by company 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.

Valuation & Earnings

This table compares Firstgroup and TFI International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Firstgroup	$6.46 billion	0.23	$162.68 million	N/A	N/A
TFI International	$8.40 billion	0.82	$422.48 million	$3.88	21.74

TFI International has higher revenue and earnings than Firstgroup.

Risk & Volatility

Firstgroup has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, TFI International has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares Firstgroup and TFI International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Firstgroup	N/A	N/A	N/A
TFI International	4.06%	14.20%	5.28%

Summary

TFI International beats Firstgroup on 13 of the 15 factors compared between the two stocks.

About Firstgroup

FirstGroup plc provides public transport services in the United Kingdom. The company operates through First Bus and First Rail segments. The First Bus segment offers local bus services with a fleet of approximately 4,800 buses in the United Kingdom. The First Rail segment operates a passenger rail network that provides long-distance, commuter, regional, and sleeper services through a portfolio of Great Western Railway, South Western Railway, and Avanti West Coast franchises; and hull trains and Lumos. FirstGroup plc was founded in 1986 and is based in London, the United Kingdom.

About TFI International

TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States and Canada. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items in North America. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank, container, and dedicated services. This segment also carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2023, it operates 11,455 trucks, 34,599 trailers, and 7,504 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. was founded in 1957 and is headquartered in Saint-Laurent, Canada.