Royal Mail (OTCMKTS:ROYMY) versus TFI International (NYSE:TFII) Head-To-Head Comparison

TFI International (NYSE:TFII) and Royal Mail (OTCMKTS:ROYMY) are both mid-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for TFI International and Royal Mail, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFI International	2	7	11	2	2.59
Royal Mail	0	0	0	0	0.00

TFI International presently has a consensus price target of $111.27, indicating a potential upside of 28.19%. Given TFI International’s stronger consensus rating and higher possible upside, equities research analysts clearly believe TFI International is more favorable than Royal Mail.

Profitability

This table compares TFI International and Royal Mail’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TFI International	4.06%	14.20%	5.28%
Royal Mail	N/A	N/A	N/A

Insider & Institutional Ownership

73.3% of TFI International shares are owned by institutional investors. 5.5% of TFI International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares TFI International and Royal Mail”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TFI International	$8.40 billion	0.85	$422.48 million	$3.88	22.37
Royal Mail	$15.94 billion	0.24	$67.88 million	N/A	N/A

TFI International has higher earnings, but lower revenue than Royal Mail.

Volatility and Risk

TFI International has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Royal Mail has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

TFI International beats Royal Mail on 12 of the 13 factors compared between the two stocks.

About TFI International

TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States and Canada. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items in North America. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank, container, and dedicated services. This segment also carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2023, it operates 11,455 trucks, 34,599 trailers, and 7,504 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. was founded in 1957 and is headquartered in Saint-Laurent, Canada.

About Royal Mail

International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider in the United Kingdom and internationally. The company offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. It also provides services for the collection, sorting, and delivery of parcels and letters. In addition, the company operates ground-based parcel delivery networks in Europe that covers 40 countries and nation states. Further, it provides express parcel delivery and logistics services. Additionally, the company engages in property holdings and facilities management activities. It serves consumers, and small and medium-sized enterprises. The company was formerly known as Royal Mail plc and changed its name to International Distributions Services plc in October 2022. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom.