Head-To-Head Survey: Core-Mark Holding Company (CORE) vs. Roadrunner Transportation Systems (NYSE:RRTS)

Core-Mark Holding Company (NASDAQ: CORE) and Roadrunner Transportation Systems (NYSE:RRTS) are both small-cap business services companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitabiliy and risk.

Insider and Institutional Ownership

98.3% of Core-Mark Holding Company shares are held by institutional investors. Comparatively, 74.6% of Roadrunner Transportation Systems shares are held by institutional investors. 2.4% of Core-Mark Holding Company shares are held by insiders. Comparatively, 25.8% of Roadrunner Transportation Systems shares are held by 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Core-Mark Holding Company 0.34% 11.42% 4.24%
Roadrunner Transportation Systems N/A N/A N/A

Dividends

Core-Mark Holding Company 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 Company pays out 32.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Core-Mark Holding Company and Roadrunner Transportation Systems, as provided by MarketBeat.com.

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

Core-Mark Holding Company presently has a consensus target price of $40.75, suggesting a potential upside of 24.66%. Roadrunner Transportation Systems has a consensus target price of $9.67, suggesting a potential upside of 31.88%. Given Roadrunner Transportation Systems’ higher possible upside, analysts clearly believe Roadrunner Transportation Systems is more favorable than Core-Mark Holding Company.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Core-Mark Holding Company $11.86 billion 0.13 $130.70 million $1.10 29.72
Roadrunner Transportation Systems $1.97 billion 0.14 $100.85 million $0.66 11.11

Core-Mark Holding Company has higher revenue and earnings than Roadrunner Transportation Systems. Roadrunner Transportation Systems is trading at a lower price-to-earnings ratio than Core-Mark Holding Company, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Core-Mark Holding Company has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Roadrunner Transportation Systems has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Summary

Core-Mark Holding Company beats Roadrunner Transportation Systems on 12 of the 16 factors compared between the two stocks.

About Core-Mark Holding Company

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.

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.

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