Universal Logistics (NASDAQ:ULH) vs. Aurizon (OTCMKTS:QRNNF) Financial Review

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

Earnings & Valuation

This table compares Aurizon and Universal Logistics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aurizon	N/A	N/A	N/A	$0.12	26.27
Universal Logistics	$1.53 billion	0.23	-$99.87 million	($1.84)	-7.27

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aurizon	N/A	N/A	N/A
Universal Logistics	-3.16%	2.01%	0.62%

Dividends

Aurizon pays an annual dividend of $0.06 per share and has a dividend yield of 2.1%. Universal Logistics pays an annual dividend of $0.42 per share and has a dividend yield of 3.1%. Aurizon pays out 54.2% of its earnings in the form of a dividend. Universal Logistics pays out -22.8% 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.

Institutional and Insider Ownership

13.3% of Aurizon shares are held by institutional investors. Comparatively, 25.5% of Universal Logistics shares are held by institutional investors. 73.5% of Universal Logistics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Aurizon and Universal Logistics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aurizon	0	1	0	0	2.00
Universal Logistics	2	1	0	0	1.33

Aurizon currently has a consensus price target of $3.80, suggesting a potential upside of 22.58%. Universal Logistics has a consensus price target of $15.00, suggesting a potential upside of 12.11%. Given Aurizon’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Aurizon is more favorable than Universal Logistics.

Summary

Universal Logistics beats Aurizon on 7 of the 12 factors compared between the two stocks.

About Aurizon

Aurizon Holdings Limited, through its subsidiaries, operates as a rail freight operator in Australia. The company operates through Network, Coal, Bulk, and Other segments. It transports various commodities, including mining, agricultural, industrial, and retail products; and retail goods and groceries across small and big towns, and cities, as well as coal and iron ore. The company also operates and manages the Central Queensland Coal Network that consists of 2,670 kilometers of track network; and provides various specialist services, such as rail design, engineering, construction, management, and maintenance, as well as supply chain solutions. It serves miners, primary producers, and the industry. The company was formerly known as QR National Limited and changed its name to Aurizon Holdings Limited in December 2012. The company was incorporated in 2010 and is headquartered in Fortitude Valley, Australia.

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.