Contrasting AMERCO (UHAL) and ArcBest (ARCB)

ArcBest (NASDAQ: ARCB) and AMERCO (NASDAQ:UHAL) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Profitability

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This table compares ArcBest and AMERCO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ArcBest 2.11% 5.82% 2.72%
AMERCO 22.22% 9.96% 3.08%

Dividends

ArcBest pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. AMERCO does not pay a dividend. ArcBest pays out 24.1% of its earnings in the form of a dividend.

Institutional & Insider Ownership

88.6% of ArcBest shares are owned by institutional investors. Comparatively, 35.3% of AMERCO shares are owned by institutional investors. 1.2% of ArcBest shares are owned by insiders. Comparatively, 42.6% of AMERCO shares are owned by 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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ArcBest and AMERCO, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ArcBest 1 7 0 0 1.88
AMERCO 0 0 0 0 N/A

ArcBest currently has a consensus target price of $34.71, indicating a potential upside of 10.73%. Given ArcBest’s higher probable upside, equities research analysts clearly believe ArcBest is more favorable than AMERCO.

Valuation & Earnings

This table compares ArcBest and AMERCO’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ArcBest $2.83 billion 0.28 $59.72 million $1.33 23.57
AMERCO $3.42 billion 1.96 $398.42 million $19.55 17.49

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

Risk and Volatility

ArcBest has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, AMERCO has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Summary

AMERCO beats ArcBest on 9 of the 14 factors compared between the two stocks.

ArcBest Company Profile

ArcBest Corporation is a holding company of businesses providing integrated logistics solutions. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. Its ArcBest segment includes truckload, expedite, international, warehousing, freight transportation, management services and moving services. Its FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles to customers in the United States and Canada through a network of third-party service providers.

AMERCO Company Profile

AMERCO is a do-it-yourself moving and storage operator through its subsidiary, U-Haul International, Inc. (U-Haul). The Company supplies its products and services to help people move and store their household and commercial goods through U-Haul. It sells U-Haul brand boxes, tape, and other moving and self-storage products and services to do-it-yourself moving and storage customers at its distribution outlets and through uhaul.com and eMove Websites. The Company operates through three segments: Moving and Storage; Property and Casualty Insurance, and Life Insurance. The Moving and Storage segment includes the operations of AMERCO, U-Haul and Amerco Real Estate Company, and the subsidiaries of U-Haul and Real Estate. The Property and Casualty Insurance segment consists of the operations of Repwest Insurance Company and its subsidiaries, and ARCOA Risk Retention Group. The Life Insurance segment consists of the operations of Oxford Life Insurance Company and its subsidiaries.

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