TFI International (NYSE:TFII) vs. DSV (OTCMKTS:DSDVY) Critical Analysis

TFI International (NYSE:TFII) and DSV (OTCMKTS:DSDVY) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares TFI International and DSV’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%
DSV	4.23%	10.92%	4.63%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TFI International and DSV, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFI International	2	7	11	2	2.59
DSV	0	2	1	2	3.00

TFI International presently has a consensus price target of $111.27, suggesting a potential upside of 27.61%. Given TFI International’s higher possible upside, equities research analysts plainly believe TFI International is more favorable than DSV.

Dividends

TFI International pays an annual dividend of $1.80 per share and has a dividend yield of 2.1%. DSV pays an annual dividend of $0.30 per share and has a dividend yield of 0.3%. TFI International pays out 46.4% of its earnings in the form of a dividend. DSV pays out 10.2% 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.

Volatility and Risk

TFI International has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, DSV has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Institutional & Insider Ownership

73.3% of TFI International shares are owned by institutional investors. Comparatively, 0.2% of DSV shares are owned by institutional investors. 5.5% of TFI International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares TFI International and DSV”s top-line revenue, earnings per share (EPS) 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	22.47
DSV	$24.24 billion	2.15	$1.47 billion	$2.94	36.87

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

Summary

TFI International beats DSV on 9 of the 16 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 DSV

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific. It operates through three segments: Air & Sea, Road, and Solutions. The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers. It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops. In addition, the company provides logistics solutions for automotive, technology, healthcare, energy, industrial, retail/ fashion, and chemical sectors; and inventory management solutions. Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services. The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021. DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.