Critical Contrast: XPO Logistics (XPO) & Hub Group (HUBG)

XPO Logistics (NYSE: XPO) and Hub Group (NASDAQ:HUBG) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares XPO 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
XPO Logistics $15.38 billion 0.71 $312.40 million $2.41 37.94
Hub Group $4.03 billion 0.39 $135.15 million $4.05 11.37

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for XPO Logistics and Hub Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XPO Logistics 0 1 17 0 2.94
Hub Group 1 8 3 0 2.17

XPO Logistics presently has a consensus price target of $95.65, suggesting a potential upside of 4.61%. Hub Group has a consensus price target of $47.55, suggesting a potential upside of 3.25%. Given XPO Logistics’ stronger consensus rating and higher possible upside, research analysts clearly believe XPO Logistics is more favorable than Hub Group.

Risk & Volatility

XPO Logistics has a beta of 2.55, meaning that its share price is 155% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Institutional & Insider Ownership

92.9% of Hub Group shares are owned by institutional investors. 15.8% of XPO Logistics shares are owned by company insiders. Comparatively, 5.4% of Hub Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares XPO Logistics and Hub Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XPO Logistics 2.11% 7.29% 2.08%
Hub Group 3.35% 9.36% 4.27%

Summary

XPO Logistics beats Hub Group on 9 of the 14 factors compared between the two stocks.

XPO Logistics Company Profile

XPO Logistics, Inc. is a global provider of supply chain solutions. The Company operates in two segments: Transportation and Logistics. The Transportation segment provides freight brokerage, last mile, less-than-truckload (LTL), full truckload and global forwarding services. The Logistics segment provides a range of contract logistics services, including highly engineered and customized solutions, value-added warehousing and distribution, cold chain solutions and other inventory solutions. Its freight brokerage operations encompass truck brokerage globally, as well as intermodal, drayage and expedite services in North America. In Logistics segment, it provides warehousing and distribution solutions, such as factory support, aftermarket support, integrated manufacturing, packaging, labeling and transportation. As of December 31, 2016, the Company had more than 10,000 independent owner operators under contract to provide drayage, expedite, last mile and LTL services to its customers.

Hub Group Company Profile

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.

Receive News & Ratings for XPO Logistics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for XPO Logistics and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply