Analyzing DSV (OTCMKTS:DSDVY) & Universal Logistics (NASDAQ:ULH)

Universal Logistics (NASDAQ:ULH) and DSV (OTCMKTS:DSDVY) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Dividends

Universal Logistics pays an annual dividend of $0.42 per share and has a dividend yield of 2.6%. DSV pays an annual dividend of $0.30 per share and has a dividend yield of 0.2%. Universal Logistics pays out -27.6% of its earnings in the form of a dividend. DSV pays out 10.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Universal Logistics is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Universal Logistics and DSV”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Logistics	$1.85 billion	0.23	$129.91 million	($1.52)	-10.64
DSV	$37.45 billion	1.70	$1.23 billion	$2.94	45.09

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

Profitability

This table compares Universal Logistics and DSV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Logistics	-2.46%	6.49%	2.26%
DSV	4.23%	10.92%	4.63%

Insider and Institutional Ownership

25.5% of Universal Logistics shares are owned by institutional investors. Comparatively, 0.2% of DSV shares are owned by institutional investors. 73.6% of Universal Logistics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Universal Logistics and DSV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Logistics	1	2	0	0	1.67
DSV	0	2	3	1	2.83

Universal Logistics presently has a consensus price target of $17.00, indicating a potential upside of 5.07%. Given Universal Logistics’ higher probable upside, equities research analysts plainly believe Universal Logistics is more favorable than DSV.

Volatility & Risk

Universal Logistics has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, DSV has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.

Summary

DSV beats Universal Logistics on 12 of the 17 factors compared between the two stocks.

About Universal Logistics

Universal Logistics Holdings, Inc. provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. The company offers truckload services, which include dry van, flatbed, heavy-haul, and refrigerated operations; domestic and international freight forwarding, and customs brokerage services. It transports various commodities comprising automotive parts, machinery, building materials, paper, food, consumer goods, furniture, steel, and other metals. The company also provides value-added services for individual customer requirements, including material handling, consolidation, sequencing, sub-assembly, cross-dock, kitting, repacking, warehousing, and returnable container management; and intermodal support services comprising short-to-medium distance delivery of steamship and rail truck containers between the port or railhead, and the customer. It serves automotive, steel, and other metals, retail and consumer goods, energy, and manufacturing industries, as well as other transportation companies who aggregate loads from various shippers. The company was formerly known as Universal Truckload Services, Inc. and changed its name to Universal Logistics Holdings, Inc. in April 2016. Universal Logistics Holdings, Inc. was founded in 1932 and is headquartered in Warren, Michigan.

About DSV

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific. It operates through three segments: Air & Sea, Road, and Solutions. The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers. It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops. In addition, the company provides logistics solutions for automotive, technology, healthcare, energy, industrial, retail/ fashion, and chemical sectors; and inventory management solutions. Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services. The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021. DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.