Echo Global Logistics (ECHO) & Expeditors International of Washington (EXPD) Head to Head Review

Echo Global Logistics (NASDAQ: ECHO) and Expeditors International of Washington (NASDAQ:EXPD) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Earnings and Valuation

How to Become a New Pot Stock Millionaire

This table compares Echo Global Logistics and Expeditors International of Washington’s revenue, earnings per share 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 42.42
Expeditors International of Washington $6.92 billion 1.56 $489.34 million $2.48 24.83

Expeditors International of Washington has higher revenue and earnings than Echo Global Logistics. Expeditors International of Washington 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.

Dividends

Expeditors International of Washington pays an annual dividend of $0.84 per share and has a dividend yield of 1.4%. Echo Global Logistics does not pay a dividend. Expeditors International of Washington pays out 33.9% of its earnings in the form of a dividend. Expeditors International of Washington has increased its dividend for 23 consecutive years.

Profitability

This table compares Echo Global Logistics and Expeditors International of Washington’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echo Global Logistics 0.65% 5.22% 2.26%
Expeditors International of Washington 7.07% 22.79% 14.87%

Risk & Volatility

Echo Global Logistics has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Expeditors International of Washington has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Echo Global Logistics and Expeditors International of Washington, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echo Global Logistics 1 3 6 0 2.50
Expeditors International of Washington 1 6 1 0 2.00

Echo Global Logistics presently has a consensus price target of $29.88, indicating a potential upside of 6.70%. Expeditors International of Washington has a consensus price target of $62.57, indicating a potential upside of 1.59%. Given Echo Global Logistics’ stronger consensus rating and higher possible upside, research analysts plainly believe Echo Global Logistics is more favorable than Expeditors International of Washington.

Insider & Institutional Ownership

99.0% of Echo Global Logistics shares are owned by institutional investors. Comparatively, 91.7% of Expeditors International of Washington shares are owned by institutional investors. 8.1% of Echo Global Logistics shares are owned by company insiders. Comparatively, 0.8% of Expeditors International of Washington shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Expeditors International of Washington beats Echo Global Logistics on 9 of the 17 factors compared between the two stocks.

About Echo Global Logistics

Echo Global Logistics, Inc. is a provider of technology-enabled transportation and supply chain management solutions. The Company utilizes a technology platform to compile and analyze data from its multi-modal network of transportation providers to facilitate its transportation and logistics services. The Company focuses primarily on arranging transportation by truckload (TL) and less than truckload (LTL) carriers. It also offers intermodal (which involves moving a shipment by rail and truck), small parcel, domestic air, expedited and international transportation services. The Company’s core logistics services include rate negotiation, shipment execution and tracking, carrier selection and management, routing compliance freight bill payment and audit, payment and performance management and reporting functions.

About Expeditors International of Washington

Expeditors International of Washington, Inc. provides logistics services in the Americas, North Asia, South Asia, Europe, the Middle East, Africa, and India. The company offers airfreight services, such as air freight consolidation and forwarding; ocean freight and ocean services, such as ocean freight consolidation, direct ocean forwarding, and order management; customs brokerage, intra-continental ground transportation and delivery, and warehousing and distribution services; and customs clearance, purchase order management, vendor consolidation, time-definite transportation services, cargo insurance, cargo monitoring and tracking, and other logistics solutions. It acts as a freight consolidator or as an agent for the airline, which carries the shipment. The company also provides ancillary services that include preparation of shipping and customs documentation, packing, crating, insurance services, negotiation of letters of credit, and the preparation of documentation to comply with local export laws. Its customers include retailing and wholesaling, electronics, and industrial and manufacturing companies. Expeditors International of Washington, Inc. was founded in 1979 and is headquartered in Seattle, Washington.

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

Leave a Reply