Roadrunner Transportation Systems (NASDAQ: RRTS) and Core-Mark Holding (NASDAQ:CORE) are both small-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Earnings & Valuation

This table compares Roadrunner Transportation Systems and Core-Mark Holding’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Roadrunner Transportation Systems $1.97 billion 0.18 $100.85 million N/A N/A
Core-Mark Holding $11.83 billion 0.13 $117.80 million $0.90 36.46

Core-Mark Holding has higher revenue and earnings than Roadrunner Transportation Systems.

Profitability

This table compares Roadrunner Transportation Systems and Core-Mark Holding’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Roadrunner Transportation Systems 1.49% 5.11% 2.40%
Core-Mark Holding 0.27% 9.70% 3.56%

Dividends

Core-Mark Holding pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Roadrunner Transportation Systems does not pay a dividend. Core-Mark Holding pays out 40.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Roadrunner Transportation Systems and Core-Mark Holding, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roadrunner Transportation Systems 0 2 1 0 2.33
Core-Mark Holding 0 1 3 0 2.75

Roadrunner Transportation Systems presently has a consensus price target of $9.67, indicating a potential upside of 4.05%. Core-Mark Holding has a consensus price target of $39.50, indicating a potential upside of 20.39%. Given Core-Mark Holding’s stronger consensus rating and higher possible upside, analysts plainly believe Core-Mark Holding is more favorable than Roadrunner Transportation Systems.

Insider and Institutional Ownership

98.3% of Core-Mark Holding shares are held by institutional investors. 2.5% of Core-Mark Holding shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Core-Mark Holding beats Roadrunner Transportation Systems on 11 of the 14 factors compared between the two stocks.

About Roadrunner Transportation Systems

Roadrunner Transportation Systems, Inc. (RRTS) is an asset-light transportation and logistics service provider. The Company offers a suite of global supply chain solutions, including truckload logistics (TL), customized and expedited less-than-truckload (LTL), intermodal solutions (transporting a shipment by over one mode, primarily through rail and truck), freight consolidation, inventory management, expedited services, air freight, international freight forwarding, customs brokerage and transportation management solutions. The Company operates through three segments: Truckload Logistics, Less-than-Truckload and Global Solutions. The Company utilizes a third-party network of transportation providers, consisting of independent contractors (ICs) and purchased power providers, to serve a diverse customer base. It primarily focuses on small to mid-size shippers.

About Core-Mark Holding

Core-Mark Holding Company, Inc. is a wholesale distributor to the convenience retail industry in North America. The Company provides sales, marketing, distribution and logistics services. As of December 31, 2016, the Company offered services to over 43,000 customer locations across the United States and Canada through 30 distribution centers. The Company’s segments include the United States, Canada and Corporate. The Company’s primary customer base consists of traditional convenience stores, as well as alternative outlets selling consumer packaged goods. The Company’s traditional convenience store customers include various national and super-regional convenience store operators, as well as independently owned convenience stores. Its alternative outlet customers include a range of store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos and hardware stores.

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