Forward Air (NASDAQ:FWRD) & ETS (NASDAQ:ETS) Critical Analysis

Forward Air (NASDAQ:FWRD – Get Free Report) and ETS (NASDAQ:ETS – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Profitability

This table compares Forward Air and ETS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forward Air -11.37% -19.49% -0.66%
ETS -157.04% -30.26% -29.59%

Analyst Recommendations

This is a breakdown of current recommendations for Forward Air and ETS, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forward Air 1 1 3 0 2.40
ETS 1 0 0 0 1.00

Forward Air currently has a consensus target price of $28.00, suggesting a potential upside of 83.57%. Given Forward Air’s stronger consensus rating and higher probable upside, research analysts clearly believe Forward Air is more favorable than ETS.

Earnings and Valuation

This table compares Forward Air and ETS”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forward Air $2.52 billion 0.19 -$107.80 million ($8.90) -1.71
ETS $2.88 million 10.61 -$2.19 million ($0.16) -11.41

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

Insider and Institutional Ownership

97.0% of Forward Air shares are owned by institutional investors. 15.7% of Forward Air shares are owned by company insiders. Comparatively, 24.9% of ETS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Forward Air beats ETS on 9 of the 13 factors compared between the two stocks.

About Forward Air

(Get Free Report)

Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United States and Canada. It operates in two segments, Expedited Freight and Intermodal. The Expedited Freight segment provides expedited regional, inter-regional, and national less-than-truckload services; local pick-up and delivery services; and other services, which include shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling. This segment offers expedited truckload brokerage, dedicated fleet, and high security and temperature-controlled logistics services. The Intermodal segment provides intermodal container drayage services; and contract and container freight station warehouse and handling services. It serves freight forwarders, third-party logistics companies, integrated air cargo carriers and passenger, passenger and cargo airlines, steamship lines, and retailers. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.

About ETS

(Get Free Report)

Elite Express Holding Inc. is a holding company which conducts its operations through its wholly owned subsidiary, JAR Transportation Inc. It provides last-mile delivery services, primarily focused on transporting packages from distribution centers to end customers. Elite Express Holding Inc. is based in LAGUNA HILLS, Calif.

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