Core-Mark Holding (CORE) vs. Echo Global Logistics (NASDAQ:ECHO) Head-To-Head Analysis

Core-Mark Holding (NASDAQ: CORE) and Echo Global Logistics (NASDAQ:ECHO) are both small-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitabiliy, earnings, institutional ownership and dividends.

Profitability

This table compares Core-Mark Holding and Echo Global Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core-Mark Holding	0.34%	11.42%	4.24%
Echo Global Logistics	-0.09%	3.65%	1.72%

Risk & Volatility

Core-Mark Holding has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Echo Global Logistics has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Institutional & Insider Ownership

99.8% of Core-Mark Holding shares are owned by institutional investors. Comparatively, 89.6% of Echo Global Logistics shares are owned by institutional investors. 2.5% of Core-Mark Holding shares are owned by insiders. Comparatively, 8.1% of Echo Global Logistics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Core-Mark Holding pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. Echo Global Logistics does not pay a dividend. Core-Mark Holding pays out 32.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Core-Mark Holding and Echo Global Logistics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core-Mark Holding	0	1	3	0	2.75
Echo Global Logistics	0	0	7	0	3.00

Core-Mark Holding currently has a consensus price target of $40.75, suggesting a potential upside of 10.19%. Echo Global Logistics has a consensus price target of $28.83, suggesting a potential upside of 61.53%. Given Echo Global Logistics’ stronger consensus rating and higher possible upside, analysts plainly believe Echo Global Logistics is more favorable than Core-Mark Holding.

Earnings & Valuation

This table compares Core-Mark Holding and Echo Global Logistics’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Core-Mark Holding	$11.86 billion	0.14	$130.70 million	$1.10	33.62
Echo Global Logistics	$1.73 billion	0.30	$34.76 million	($0.05)	-356.93

Core-Mark Holding has higher revenue and earnings than Echo Global Logistics. Echo Global Logistics is trading at a lower price-to-earnings ratio than Core-Mark Holding, indicating that it is currently the more affordable of the two stocks.

Summary

Core-Mark Holding beats Echo Global Logistics on 8 of the 15 factors compared between the two stocks.

About Core-Mark Holding

Core-Mark Holding Company, Inc. is a wholesale distributor to the convenience retail industry in North America. The Company provides sales, marketing, distribution and logistics services. As of December 31, 2016, the Company offered services to over 43,000 customer locations across the United States and Canada through 30 distribution centers. The Company’s segments include the United States, Canada and Corporate. The Company’s primary customer base consists of traditional convenience stores, as well as alternative outlets selling consumer packaged goods. The Company’s traditional convenience store customers include various national and super-regional convenience store operators, as well as independently owned convenience stores. Its alternative outlet customers include a range of store formats, including grocery stores, drug stores, liquor stores, cigarette and tobacco shops, hotel gift shops, military exchanges, college and corporate campuses, casinos and hardware stores.

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.