Comparing Hub Group (HUBG) & C.H. Robinson Worldwide (CHRW)

Hub Group (NASDAQ: HUBG) and C.H. Robinson Worldwide (NASDAQ:CHRW) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Hub Group and C.H. Robinson Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hub Group 1.39% 8.97% 4.23%
C.H. Robinson Worldwide 3.49% 37.41% 12.84%

Earnings and Valuation

This table compares Hub Group and C.H. Robinson Worldwide’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hub Group $3.73 billion 0.41 $146.62 million $1.61 27.73
C.H. Robinson Worldwide $13.90 billion 0.81 $848.19 million $3.40 23.48

C.H. Robinson Worldwide has higher revenue and earnings than Hub Group. C.H. Robinson Worldwide is trading at a lower price-to-earnings ratio than Hub Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Hub Group and C.H. Robinson Worldwide, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hub Group 1 7 4 0 2.25
C.H. Robinson Worldwide 3 6 5 0 2.14

Hub Group presently has a consensus target price of $44.63, suggesting a potential downside of 0.06%. C.H. Robinson Worldwide has a consensus target price of $75.00, suggesting a potential downside of 6.04%. Given Hub Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Hub Group is more favorable than C.H. Robinson Worldwide.

Institutional and Insider Ownership

90.4% of Hub Group shares are held by institutional investors. Comparatively, 89.8% of C.H. Robinson Worldwide shares are held by institutional investors. 5.4% of Hub Group shares are held by insiders. Comparatively, 0.9% of C.H. Robinson Worldwide shares are held 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.

Risk & Volatility

Hub Group has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, C.H. Robinson Worldwide has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Dividends

C.H. Robinson Worldwide pays an annual dividend of $1.80 per share and has a dividend yield of 2.3%. Hub Group does not pay a dividend. C.H. Robinson Worldwide pays out 52.9% of its earnings in the form of a dividend. Hub Group has raised its dividend for 10 consecutive years.

Summary

C.H. Robinson Worldwide beats Hub Group on 10 of the 17 factors compared between the two stocks.

About Hub Group

Hub Group, Inc. is an asset-light freight transportation management company. The Company offers intermodal, truck brokerage and logistics services. It operates through two business segments: Mode and Hub. The Mode segment markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents entering into contractual arrangements with Mode Transportation, LLC (Mode LLC). The Mode segment also operates a temperature protected services division. The Hub segment provides intermodal, truck brokerage and logistics services through a network of operating centers throughout the United States, Canada and Mexico. The Hub segment services customers in a range of industries, including consumer products, retail and durable goods. It operates through a network of operating centers and independent business owners. The Company also provides drayage services with its own drayage operations.

About C.H. Robinson Worldwide

C.H. Robinson Worldwide, Inc. is a provider of transportation services and logistics solutions through a network of offices operating in North America, Europe, Asia, Australia, New Zealand and South America. The Company’s segments include North American Surface Transportation (NAST), Global Forwarding, Robinson Fresh, and All Other and Corporate. The NAST segment provides freight transportation services across North America through a network of offices in the United States, Canada and Mexico. The primary services provided by Global Forwarding segment include ocean freight services, air freight services, and customs brokerage. The Robinson Fresh segment provides sourcing under the trade name Robinson Fresh. The All Other and Corporate segment primarily consists of Managed Services and Other Surface Transportation outside of North America. It develops global transportation and distribution networks to provide transportation and supply chain services throughout the world.

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