Contrasting Kuehne & Nagel International (OTCMKTS:KHNGY) & Marten Transport (NASDAQ:MRTN)

Marten Transport (NASDAQ:MRTN) and Kuehne & Nagel International (OTCMKTS:KHNGY) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Marten Transport and Kuehne & Nagel International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marten Transport	1.47%	1.65%	1.32%
Kuehne & Nagel International	3.57%	39.21%	7.28%

Valuation and Earnings

This table compares Marten Transport and Kuehne & Nagel International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marten Transport	$883.65 million	1.27	$17.44 million	$0.17	80.82
Kuehne & Nagel International	$29.53 billion	1.08	$1.06 billion	$1.84	28.62

Kuehne & Nagel International has higher revenue and earnings than Marten Transport. Kuehne & Nagel International is trading at a lower price-to-earnings ratio than Marten Transport, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Marten Transport has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Kuehne & Nagel International has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Dividends

Marten Transport pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Kuehne & Nagel International pays an annual dividend of $0.93 per share and has a dividend yield of 1.8%. Marten Transport pays out 141.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kuehne & Nagel International pays out 50.5% of its earnings in the form of a dividend. Kuehne & Nagel International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Marten Transport and Kuehne & Nagel International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marten Transport	0	3	0	1	2.50
Kuehne & Nagel International	2	2	2	0	2.00

Marten Transport currently has a consensus target price of $16.00, indicating a potential upside of 16.45%. Given Marten Transport’s stronger consensus rating and higher probable upside, analysts clearly believe Marten Transport is more favorable than Kuehne & Nagel International.

Insider & Institutional Ownership

69.1% of Marten Transport shares are owned by institutional investors. 22.6% of Marten Transport shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Kuehne & Nagel International beats Marten Transport on 9 of the 17 factors compared between the two stocks.

About Marten Transport

Marten Transport, Ltd. operates as a temperature-sensitive truckload carrier for shippers in the United State, Mexico, and Canada. The company operates through four segments: Truckload, Dedicated, Intermodal, and Brokerage. The Truckload segment transports food and other consumer packaged goods that require a temperature-controlled or insulated environment, as well as dry freight; and regional short-haul and medium-to-long-haul full-load transportation services. The Dedicated segment offers customized transportation solutions for individual customers' requirements using temperature-controlled trailers, dry vans, and other specialized equipment. The Intermodal segment transports customers' freight utilizing its refrigerated containers and temperature-controlled trailers on railroad flatcars for portions of trips, as well as using tractors and contracted carriers. The Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for customers in temperature-controlled trailers and dry vans. As of December 31, 2023, the company operated a fleet of 3,349 tractors, that included 3,255 company-owned tractors and 94 tractors supplied by independent contractors. Marten Transport, Ltd. was founded in 1946 and is headquartered in Mondovi, Wisconsin.

About Kuehne & Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.