Echo Global Logistics (NASDAQ: ECHO) and Brink’s (NYSE:BCO) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Insider & Institutional Ownership
99.0% of Echo Global Logistics shares are owned by institutional investors. Comparatively, 93.1% of Brink’s shares are owned by institutional investors. 8.1% of Echo Global Logistics shares are owned by company insiders. Comparatively, 2.5% of Brink’s shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Echo Global Logistics and Brink’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%|
Volatility and Risk
Echo Global Logistics has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Brink’s has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Echo Global Logistics and Brink’s, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Echo Global Logistics||1||4||5||0||2.40|
Echo Global Logistics presently has a consensus price target of $30.22, indicating a potential upside of 0.07%. Brink’s has a consensus price target of $98.00, indicating a potential upside of 29.29%. Given Brink’s’ stronger consensus rating and higher probable upside, analysts clearly believe Brink’s is more favorable than Echo Global Logistics.
Brink’s pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Echo Global Logistics does not pay a dividend. Brink’s pays out 19.8% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Echo Global Logistics and Brink’s’ gross 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||0.44||$12.62 million||$0.66||45.76|
|Brink’s||$3.35 billion||1.15||$16.70 million||$3.03||25.02|
Brink’s has higher revenue and earnings than Echo Global Logistics. Brink’s 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.
Brink’s beats Echo Global Logistics on 10 of the 15 factors compared between the two stocks.
About Echo Global Logistics
Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States. It uses a proprietary technology platform to compile and analyze data from its multi-modal network of transportation providers for the transportation and logistics needs. The company offers services in various transportation modes, such as truckload, less-than truckload, small parcel, inter-modal, domestic air, and expedited and international. Its principal transportation management and logistics services include rate negotiation; procurement of transportation; shipment execution and tracking; carrier management, selection, reporting, and compliance; executive dashboard presentations and detailed shipment reports; freight bill payment and audit; claims processing and service refund management; design and management of inbound client freight programs; individually configured Web portals and self-service data warehouses; enterprise resource planning integration with transactional shipment data; and integration of shipping applications into client e-commerce sites, as well as back-end reports customized to the internal reporting needs of the business. The company serves clients operating in various industries, such as manufacturing, construction, food and beverage, consumer products, and retail. Echo Global Logistics, Inc. was founded in 2005 and is headquartered in Chicago, Illinois.
The Brink's Company provides secure transportation, cash management, and other security-related services worldwide. The company offers cash-in-transit services, including armored vehicle transportation of valuables; automated teller machine (ATM) services, such as cash replenishment, replenishment forecasting, cash optimization, ATM remote monitoring, service call dispatching, transaction processing, installation, and first and second line maintenance; and network infrastructure services. It also provides transportation services for valued commodities, including diamonds, jewelry, precious metals, securities, currency, high-tech devices, electronics, and pharmaceuticals; and cash management services, such as money processing, deploying and servicing intelligent safes and safe control devices, and check imaging, as well as cashier balancing, counterfeit detection, account consolidation, and electronic reporting services. In addition, the company offers payment services, including bill payment processing, mobile phone top-up, and prepaid cards; and commercial security system services, such as security system design and installation services that include alarms, motion detectors, closed-circuit televisions, and digital video recorders, as well as access control systems comprising card and biometric readers, electronic locks, and turnstiles. Further, it provides security and guarding services to protect airports, offices, warehouses, stores, and public venues. The company serves banks and financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations. The company was formerly known as The Pittston Company and changed its name to The Brink's Company in May 2003. The Brink's Company was founded in 1838 and is headquartered in Richmond, Virginia.
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