Nabtesco (OTCMKTS:NCTKF) & Ryder System (NYSE:R) Critical Survey

Nabtesco (OTCMKTS:NCTKF) and Ryder System (NYSE:R) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Volatility and Risk

Nabtesco has a beta of -0.06, suggesting that its stock price is 106% less volatile than the S&P 500. Comparatively, Ryder System has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Nabtesco and Ryder System, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nabtesco	0	0	0	0	0.00
Ryder System	0	2	6	1	2.89

Ryder System has a consensus price target of $186.50, suggesting a potential upside of 1.58%. Given Ryder System’s stronger consensus rating and higher probable upside, analysts plainly believe Ryder System is more favorable than Nabtesco.

Profitability

This table compares Nabtesco and Ryder System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nabtesco	3.35%	5.01%	3.24%
Ryder System	3.99%	17.83%	3.31%

Institutional and Insider Ownership

87.5% of Ryder System shares are owned by institutional investors. 5.2% of Ryder System shares are owned 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.

Earnings and Valuation

This table compares Nabtesco and Ryder System”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nabtesco	$2.14 billion	0.89	$66.79 million	$0.78	20.26
Ryder System	$12.64 billion	0.59	$489.00 million	$11.76	15.61

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

Summary

Ryder System beats Nabtesco on 13 of the 15 factors compared between the two stocks.

About Nabtesco

Nabtesco Corporation manufactures and sells equipment in the industrial, daily life, and environmental fields in Japan and internationally. The company offers precision reduction gears for industrial robots’ joints; hydraulic equipment, such as traveling unit for crawlers, control valve for mini excavators, and swing unit for hydraulic excavators; railroad vehicle equipment, such as railroad vehicle brake systems, test equipment, door operating units, brake shoes, seat turning equipment, and snow removal devices; and aircraft equipment comprising flight control actuation systems and high voltage electric power distribution units. It also provides air dryers and wedge brake chambers for commercial vehicles, and hydraulic clutch master cylinders for passenger vehicles; engine remote control systems for marine vessels; automatic doors and platform doors for buildings; automatic filters/sealers for retort pouch foods; and prosthetic knee joints and rollator with a speed control system. In addition, the company offers condition monitoring with fail-safe equipment and diagnostic services for wind turbine. Nabtesco Corporation was incorporated in 2003 and is headquartered in Tokyo, Japan.

About Ryder System

Ryder System, Inc. operates as a logistics and transportation company worldwide. It operates through three segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS). The FMS segment offers full-service leasing and leasing with flexible maintenance options; commercial vehicle rental services; and contract or transactional maintenance services of trucks, tractors, and trailers; access to diesel fuel; and fuel planning and tax reporting, cards, and monitoring services, and centralized billing, as well as sells used vehicles through its retail sales centers and www.ryder.com/used-trucks website, as well as digital and technology support services. The DTS segment offers equipment, maintenance, drivers, administrative, and additional services, as well as routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, and technology and communication systems support services. The SCS segment comprises distribution management services, such as designing and managing customer's distribution network and facilities; coordinating warehousing and transportation for inbound and outbound material flows; handling import and export for international shipments; coordinating just-in-time replenishment of component parts to manufacturing and final assembly; and offering shipments to customer distribution centers or end customer delivery points, as well as other value added services, such as light assembly of components. This segment also offers transportation management and brokerage services, such as shipment optimization, load scheduling, and delivery confirmation services; knowledge-based professional services; and e-commerce and last mile services. The company was founded in 1933 and is headquartered in Coral Gables, Florida.