Forward Air (NASDAQ:FWRD) & Its Rivals Critical Review

Forward Air (NASDAQ: FWRD) is one of 10 public companies in the “Freight transportation arrangement” industry, but how does it weigh in compared to its peers? We will compare Forward Air to similar companies based on the strength of its earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Valuation & Earnings

How to Become a New Pot Stock Millionaire

This table compares Forward Air and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Forward Air $1.10 billion $87.32 million 22.72
Forward Air Competitors $4.76 billion $169.74 million 20.29

Forward Air’s peers have higher revenue and earnings than Forward Air. Forward Air is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Forward Air and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forward Air 7.93% 13.91% 10.80%
Forward Air Competitors -2.46% 3.34% 1.56%

Dividends

Forward Air pays an annual dividend of $0.60 per share and has a dividend yield of 1.1%. Forward Air pays out 25.4% of its earnings in the form of a dividend. As a group, “Freight transportation arrangement” companies pay a dividend yield of 1.3% and pay out 34.2% of their earnings in the form of a dividend.

Insider and Institutional Ownership

98.4% of Forward Air shares are held by institutional investors. Comparatively, 74.3% of shares of all “Freight transportation arrangement” companies are held by institutional investors. 2.4% of Forward Air shares are held by insiders. Comparatively, 7.9% of shares of all “Freight transportation arrangement” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Forward Air and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forward Air 0 4 2 0 2.33
Forward Air Competitors 106 418 355 16 2.31

Forward Air currently has a consensus target price of $60.00, suggesting a potential upside of 11.90%. As a group, “Freight transportation arrangement” companies have a potential upside of 6.97%. Given Forward Air’s stronger consensus rating and higher probable upside, analysts clearly believe Forward Air is more favorable than its peers.

Risk & Volatility

Forward Air has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Forward Air’s peers have a beta of 1.29, meaning that their average stock price is 29% more volatile than the S&P 500.

Summary

Forward Air beats its peers on 8 of the 15 factors compared.

Forward Air Company Profile

Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United State and Canada. The company operates through four segments: Expedited Less-than-truckload (LTL), Truckload Premium Services (TLS), Intermodal, and Pool Distribution (Pool). The Expedited LTL segment provides expedited regional, inter-regional, and national LTL services, as well as local pick-up and delivery services. It also offers shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling services. This segment provides its transportation services through a network of terminals located at or near airports. The TLS 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. The Pool segment offers high-frequency handling and distribution of time-sensitive products to various destinations. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.

Receive News & Ratings for Forward Air Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Forward Air and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply