Financial Comparison: Kuehne & Nagel International (OTCMKTS:KHNGY) versus C.H. Robinson Worldwide (NASDAQ:CHRW)

Kuehne & Nagel International (OTCMKTS:KHNGY) and C.H. Robinson Worldwide (NASDAQ:CHRW) are both large-cap transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

93.2% of C.H. Robinson Worldwide shares are held by institutional investors. 0.4% of C.H. Robinson Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Kuehne & Nagel International pays an annual dividend of $0.93 per share and has a dividend yield of 1.8%. C.H. Robinson Worldwide pays an annual dividend of $2.52 per share and has a dividend yield of 1.2%. Kuehne & Nagel International pays out 52.8% of its earnings in the form of a dividend. C.H. Robinson Worldwide pays out 51.0% 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. C.H. Robinson Worldwide has increased its dividend for 27 consecutive years.

Profitability

This table compares Kuehne & Nagel International and C.H. Robinson Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kuehne & Nagel International	3.52%	38.37%	7.12%
C.H. Robinson Worldwide	3.70%	35.49%	12.25%

Valuation & Earnings

This table compares Kuehne & Nagel International and C.H. Robinson Worldwide”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuehne & Nagel International	$29.53 billion	1.06	$1.06 billion	$1.76	29.48
C.H. Robinson Worldwide	$16.23 billion	1.49	$587.08 million	$4.94	41.65

Kuehne & Nagel International has higher revenue and earnings than C.H. Robinson Worldwide. Kuehne & Nagel International is trading at a lower price-to-earnings ratio than C.H. Robinson Worldwide, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Kuehne & Nagel International has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Kuehne & Nagel International and C.H. Robinson Worldwide, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuehne & Nagel International	2	3	2	0	2.00
C.H. Robinson Worldwide	1	6	17	0	2.67

C.H. Robinson Worldwide has a consensus target price of $198.62, indicating a potential downside of 3.46%. Given C.H. Robinson Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe C.H. Robinson Worldwide is more favorable than Kuehne & Nagel International.

Summary

C.H. Robinson Worldwide beats Kuehne & Nagel International on 13 of the 17 factors compared between the two stocks.

About Kuehne & Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.

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.