Echo Global Logistics (NASDAQ: ECHO) and Hub Group (NASDAQ:HUBG) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Volatility and Risk
Echo Global Logistics has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
This table compares Echo Global Logistics and Hub Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Echo Global Logistics||0.96%||7.50%||3.16%|
Valuation and Earnings
This table compares Echo Global Logistics and Hub Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Echo Global Logistics||$1.94 billion||0.40||$12.62 million||$0.66||41.44|
|Hub Group||$4.03 billion||0.40||$135.15 million||$1.91||24.71|
Hub Group has higher revenue and earnings than Echo Global Logistics. Hub Group is trading at a lower price-to-earnings ratio than Echo Global Logistics, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Echo Global Logistics and Hub Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Echo Global Logistics||1||4||5||0||2.40|
Echo Global Logistics presently has a consensus price target of $32.33, suggesting a potential upside of 18.22%. Hub Group has a consensus price target of $47.33, suggesting a potential upside of 0.28%. Given Echo Global Logistics’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Echo Global Logistics is more favorable than Hub Group.
Institutional & Insider Ownership
98.2% of Echo Global Logistics shares are held by institutional investors. Comparatively, 95.1% of Hub Group shares are held by institutional investors. 8.1% of Echo Global Logistics shares are held by company insiders. Comparatively, 5.8% of Hub Group shares are held 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.
Echo Global Logistics Company Profile
Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States. It uses a proprietary technology platform to compile and analyze data from its multi-modal network of transportation providers for the transportation and logistics needs. The company offers services in various transportation modes, such as truckload, less-than truckload, small parcel, inter-modal, domestic air, and expedited and international. Its principal transportation management and logistics services include rate negotiation; procurement of transportation; shipment execution and tracking; carrier management, selection, reporting, and compliance; executive dashboard presentations and detailed shipment reports; freight bill payment and audit; claims processing and service refund management; design and management of inbound client freight programs; individually configured Web portals and self-service data warehouses; enterprise resource planning integration with transactional shipment data; and integration of shipping applications into client e-commerce sites, as well as back-end reports customized to the internal reporting needs of the business. The company serves clients operating in various industries, such as manufacturing, construction, food and beverage, consumer products, and retail. Echo Global Logistics, Inc. was founded in 2005 and is headquartered in Chicago, Illinois.
Hub Group Company Profile
Hub Group, Inc., an asset-light freight transportation management company, provides intermodal, truck brokerage, and logistics services in North America. It operates through two segments, Mode and Hub. Its intermodal services include arranging for the movement of its customers' freight in containers and trailers over long distances. The company contracts with railroads to provide transportation for the long-haul portion of the shipment and with local trucking companies for pickup and delivery. Its intermodal services also comprise negotiating rail and drayage rates, electronically tracking shipments in transit, and consolidate billing and handling claims for freight loss or damage on behalf of customers. In addition, the company offers truck brokerage services, as well as a range of transportation management services and technology solutions, including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, and Web-based shipment visibility under the Unyson Logistics name. Further, it provides multi-modal transportation services, such as small parcel, heavyweight, expedited, less-than-truckload, truckload, intermodal, railcar, and international shipping. As of December 31, 2017, the company owned a total of 32,000 53-foot private containers, as well as access to approximately 2,500 rail-owned containers for use on the Union Pacific and the Norfolk Southern rails. Hub Group, Inc. was founded in 1971 and is headquartered in Oak Brook, Illinois.
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