Head-To-Head Survey: Universal Logistics (NASDAQ:ULH) vs. Matson (NYSE:MATX)

Matson (NYSE:MATX) and Universal Logistics (NASDAQ:ULH) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Dividends

Matson pays an annual dividend of $1.44 per share and has a dividend yield of 0.9%. Universal Logistics pays an annual dividend of $0.42 per share and has a dividend yield of 2.1%. Matson pays out 10.3% of its earnings in the form of a dividend. Universal Logistics pays out -19.5% 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. Matson has raised its dividend for 13 consecutive years. Universal Logistics is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Matson and Universal Logistics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matson	0	4	2	0	2.33
Universal Logistics	1	1	0	1	2.33

Matson presently has a consensus target price of $156.25, suggesting a potential downside of 1.09%. Universal Logistics has a consensus target price of $17.00, suggesting a potential downside of 14.96%. Given Matson’s higher probable upside, equities research analysts clearly believe Matson is more favorable than Universal Logistics.

Valuation and Earnings

This table compares Matson and Universal Logistics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matson	$3.34 billion	1.44	$444.80 million	$13.94	11.33
Universal Logistics	$1.56 billion	0.34	-$99.87 million	($2.15)	-9.30

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

Insider and Institutional Ownership

84.8% of Matson shares are held by institutional investors. Comparatively, 25.5% of Universal Logistics shares are held by institutional investors. 2.5% of Matson shares are held by company insiders. Comparatively, 73.6% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Matson	13.30%	16.63%	9.75%
Universal Logistics	-3.64%	4.13%	1.36%

Volatility & Risk

Matson has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Universal Logistics has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Summary

Matson beats Universal Logistics on 13 of the 17 factors compared between the two stocks.

About Matson

Matson, Inc., together with its subsidiaries, engages in the provision of ocean transportation and logistics services. It operates through two segments, Ocean Transportation and Logistics. The Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Japan, Alaska, and Guam, as well as to other island economies in Micronesia. It primarily transports dry containers of mixed commodities, refrigerated commodities, food products, beverages, building materials, automobiles, and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, e-commerce, and other retail merchandise. This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan; and provides stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance, and other terminal services to ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor. In addition, it offers vessel management and container transshipment services. The Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load consolidation and freight forwarding services; warehousing and distribution services; supply chain management services, and non-vessel operating common carrier freight forwarding services. It serves the U.S. military, freight forwarders, retailers, consumer goods, automobile manufacturers, and other customers. The company was formerly known as Alexander & Baldwin Holdings, Inc. and changed its name to Matson, Inc. in June 2012. Matson, Inc. was founded in 1882 and is headquartered in Honolulu, Hawaii.

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.