Yellow (NASDAQ:YELLQ – Get Free Report) and Universal Logistics (NASDAQ:ULH – Get Free Report) are both small-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
Earnings and Valuation
This table compares Yellow and Universal Logistics’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Yellow | $5.24 billion | 0.05 | $21.80 million | ($1.55) | -2.94 |
| Universal Logistics | $1.66 billion | 0.53 | $92.90 million | $3.54 | 9.42 |
Universal Logistics has lower revenue, but higher earnings than Yellow. Yellow is trading at a lower price-to-earnings ratio than Universal Logistics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Yellow has a beta of 2.87, suggesting that its stock price is 187% more volatile than the S&P 500. Comparatively, Universal Logistics has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Profitability
This table compares Yellow and Universal Logistics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Yellow | -1.65% | N/A | -3.49% |
| Universal Logistics | 5.59% | 18.99% | 7.47% |
Institutional & Insider Ownership
35.7% of Yellow shares are owned by institutional investors. Comparatively, 24.7% of Universal Logistics shares are owned by institutional investors. 4.2% of Yellow shares are owned by company insiders. Comparatively, 73.4% of Universal Logistics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Yellow and Universal Logistics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Yellow | 0 | 0 | 0 | 0 | N/A |
| Universal Logistics | 0 | 0 | 1 | 0 | 3.00 |
Universal Logistics has a consensus price target of $36.00, indicating a potential upside of 7.95%. Given Universal Logistics’ higher probable upside, analysts clearly believe Universal Logistics is more favorable than Yellow.
Summary
Universal Logistics beats Yellow on 10 of the 13 factors compared between the two stocks.
About Yellow
Yellow Corporation does not have significant operations. Previously, the company provided various transportation services primarily in North America. The company primarily offered less-than-truckload (LTL) shipments and supply chain solutions to ship industrial, commercial, and retail goods. It also provided customer-specific logistics solutions, including truckload, residential, and warehouse solutions, as well as apparels, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal, metal products, non-bulk petroleum products, rubber, textiles, wood, and other manufactured products or components. In addition, the company offered specialized services, such as guaranteed expedited, time-specific delivery, cross-border, exhibit, product return, and government material shipment services; and consolidation and distribution, reverse logistics, and residential white glove services. As of December 31, 2022, it had a fleet of approximately 12,700 tractors comprising 11,700 owned and 1,000 leased tractors; and approximately 42,000 trailers consisting of 34,800 owned and 7,200 leased trailers. The company was formerly known as YRC Worldwide Inc. and changed its name to Yellow Corporation in February 2021. Yellow Corporation was founded in 1924 and is based in Nashville, Tennessee. On August 6, 2023, Yellow Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.
About Universal Logistics
Universal Logistics Holdings, Inc. provides transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. It offers truckload services, which include dry van, flatbed, heavy-haul, and refrigerated operations; domestic and international freight forwarding, and customs brokerage services. The company transports various commodities comprising automotive parts, machinery, building materials, paper, food, consumer goods, furniture, steel, and other metals. It 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…
Read More: Comparing Yellow (NASDAQ:YELLQ) & Universal Logistics (NASDAQ:ULH)