Financial Analysis: Yamato (OTCMKTS:YATRY) versus Marten Transport (NASDAQ:MRTN)

Marten Transport (NASDAQ:MRTN) and Yamato (OTCMKTS:YATRY) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

This table compares Marten Transport and Yamato’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marten Transport	5.31%	7.65%	5.77%
Yamato	N/A	N/A	N/A

Valuation and Earnings

This table compares Marten Transport and Yamato’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marten Transport	$1.13 billion	1.22	$70.37 million	$0.71	23.83
Yamato	N/A	N/A	N/A	$82.14	0.16

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

Institutional & Insider Ownership

69.1% of Marten Transport shares are owned by institutional investors. Comparatively, 0.0% of Yamato shares are owned by institutional investors. 22.9% of Marten Transport shares are owned by 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.

Dividends

Marten Transport pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Yamato pays an annual dividend of $12.06 per share and has a dividend yield of 91.7%. Marten Transport pays out 33.8% of its earnings in the form of a dividend. Yamato pays out 14.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Yamato is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Marten Transport and Yamato, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marten Transport	0	0	2	0	3.00
Yamato	0	0	0	0	N/A

Marten Transport currently has a consensus price target of $23.00, indicating a potential upside of 35.93%. Given Marten Transport’s higher probable upside, equities research analysts plainly believe Marten Transport is more favorable than Yamato.

Summary

Marten Transport beats Yamato on 9 of the 12 factors compared between the two stocks.

About Marten Transport

Marten Transport, Ltd. operates as a temperature-sensitive truckload carrier for shippers in the United State, Mexico, and Canada. The company operates through four segments: Truckload, Dedicated, Intermodal, and Brokerage. The Truckload segment transports food and other consumer packaged goods that require a temperature-controlled or insulated environment, as well as dry freight; and regional short-haul and medium-to-long-haul full-load transportation services. The Dedicated segment offers customized transportation solutions for individual customers' requirements using temperature-controlled trailers, dry vans, and other specialized equipment. The Intermodal segment transports customers' freight utilizing its refrigerated containers and temperature-controlled trailers on railroad flatcars for portions of trips, as well as using tractors and contracted carriers. The Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for customers in temperature-controlled trailers and dry vans. As of December 31, 2023, the company operated a fleet of 3,349 tractors, that included 3,255 company-owned tractors and 94 tractors supplied by independent contractors. Marten Transport, Ltd. was founded in 1946 and is headquartered in Mondovi, Wisconsin.

About Yamato

Yamato Holdings Co., Ltd. provides logistics shipping services in Japan and internationally. It operates through Retail Business Unit, Corporate Business Unit, and Other segments. The Retail Business Unit segment provides small parcel delivery services for individuals and mid-to-small sized corporations. The Corporate Business Unit segment engages in the provision of transportation services for corporations; planning and operation of logistics centers; provision of customs services; and provision of air cargo agency services. The Other segment develops and operates IT systems; offers car maintenance services; sells fuel; offers non-life insurance agency services; and provides cargo vehicle transportation services. The company was founded in 1919 and is headquartered in Chuo, Japan.