Financial Analysis: Quality Distribution (QLTY) & Hub Group (HUBG)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Quality Distribution	0.95%	N/A	2.09%
Hub Group	1.50%	9.49%	4.46%

Earnings & Valuation

This table compares Quality Distribution and Hub Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Quality Distribution	N/A	N/A	N/A	N/A	N/A
Hub Group	$3.73 billion	0.35	$146.62 million	$1.69	22.40

Hub Group has higher revenue and earnings than Quality Distribution.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Quality Distribution and Hub Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quality Distribution	0	0	0	0	N/A
Hub Group	1	4	3	0	2.25

Hub Group has a consensus target price of $40.40, indicating a potential upside of 6.74%. Given Hub Group’s higher probable upside, analysts plainly believe Hub Group is more favorable than Quality Distribution.

Institutional and Insider Ownership

93.7% of Hub Group shares are held by institutional investors. 5.4% of Hub Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Hub Group beats Quality Distribution on 8 of the 8 factors compared between the two stocks.

About Quality Distribution

Quality Distribution Inc. is a United States-based provider of bulk transportation and logistics services. The Company also provides transportation and delivery services. The Company offers services, such as chemical bulk transportation, logistics, container and depot, intermodal, leasing and risk services. Its container and depot services for intermodal equipment include repair, maintenance and cleaning, and redistribution. Its intermodal services include tracking solutions, solutions regarding capacity, pre-clearing for shipments moving across borders, and management and control over every shipping segment from departure to delivery. It offers risk management consulting that covers insurance policy reviews, insurance or self-insurance analysis and brokerage relationship studies. It also offers audit services, electronic or on-site. It serves industries, including chemical, unconventional oil and gas, bulk liquid and food grade liquid.

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.