Contrasting Sinotrans (OTCMKTS:SNOTF) and C.H. Robinson Worldwide (NASDAQ:CHRW)

C.H. Robinson Worldwide (NASDAQ:CHRW) and Sinotrans (OTCMKTS:SNOTF) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Profitability

This table compares C.H. Robinson Worldwide and Sinotrans’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C.H. Robinson Worldwide	3.73%	38.36%	12.63%
Sinotrans	N/A	N/A	N/A

Earnings and Valuation

This table compares C.H. Robinson Worldwide and Sinotrans”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C.H. Robinson Worldwide	$16.23 billion	1.06	$587.08 million	$5.24	28.22
Sinotrans	N/A	N/A	N/A	$0.24	2.65

C.H. Robinson Worldwide has higher revenue and earnings than Sinotrans. Sinotrans 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.

Institutional & Insider Ownership

93.2% of C.H. Robinson Worldwide shares are owned by institutional investors. Comparatively, 17.8% of Sinotrans shares are owned by institutional investors. 0.4% of C.H. Robinson Worldwide shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

C.H. Robinson Worldwide pays an annual dividend of $2.52 per share and has a dividend yield of 1.7%. Sinotrans pays an annual dividend of $0.05 per share and has a dividend yield of 7.8%. C.H. Robinson Worldwide pays out 48.1% of its earnings in the form of a dividend. Sinotrans pays out 20.8% 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. C.H. Robinson Worldwide has raised its dividend for 27 consecutive years. Sinotrans is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for C.H. Robinson Worldwide and Sinotrans, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C.H. Robinson Worldwide	1	7	16	1	2.68
Sinotrans	0	0	0	0	0.00

C.H. Robinson Worldwide presently has a consensus target price of $197.00, indicating a potential upside of 33.22%. Given C.H. Robinson Worldwide’s stronger consensus rating and higher possible upside, research analysts clearly believe C.H. Robinson Worldwide is more favorable than Sinotrans.

Summary

C.H. Robinson Worldwide beats Sinotrans on 13 of the 15 factors compared between the two stocks.

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.

About Sinotrans

Sinotrans Limited provides integrated logistics services primarily in the People’s Republic of China. The company operates through three segments: Agency and Related Business, Professional Logistics, and E-commerce. It offers sea freight forwarding, such as space booking, arranging transportation, container delivery and loading, storage, port concentration and dispatch, customs declaration and inspection, distribution, and delivery; air freight forwarding, including pick-up and dispatch, warehousing, packaging, booking and handling, trunk air line freight forwarding, and trucking transit services; rail freight forwarding services; shipping agency services comprising port arrival and departure, documentation, ship supplies, and other ship related services at ports; and storage and yard services, such as storage, container consolidating and devanning, cargo loading and unloading, dispatching and distribution, etc. The company also engages in the e-commerce business consisting of cross-border e-commerce logistics, logistics e-commerce platform, and logistics equipment sharing platform. In addition, it provides integrated logistics solutions, including contract, project, chemical, cold chain, and other logistics services. The company was founded in 1950 and is based in Beijing, the People’s Republic of China.