Hub Group (NASDAQ: HUBG) and Forward Air (NASDAQ:FWRD) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.
Forward Air pays an annual dividend of $0.60 per share and has a dividend yield of 1.1%. Hub Group does not pay a dividend. Forward Air pays out 25.4% of its earnings in the form of a dividend.
This table compares Hub Group and Forward Air’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Hub Group and Forward Air, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hub Group currently has a consensus price target of $47.17, suggesting a potential upside of 7.76%. Forward Air has a consensus price target of $60.00, suggesting a potential upside of 10.84%. Given Forward Air’s stronger consensus rating and higher possible upside, analysts clearly believe Forward Air is more favorable than Hub Group.
Volatility & Risk
Hub Group has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Forward Air has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Institutional & Insider Ownership
94.7% of Hub Group shares are owned by institutional investors. Comparatively, 99.0% of Forward Air shares are owned by institutional investors. 5.8% of Hub Group shares are owned by insiders. Comparatively, 2.0% of Forward Air shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Hub Group and Forward Air’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hub Group||$4.03 billion||0.37||$135.15 million||$1.91||22.92|
|Forward Air||$1.10 billion||1.45||$87.32 million||$2.36||22.94|
Hub Group has higher revenue and earnings than Forward Air. Hub Group is trading at a lower price-to-earnings ratio than Forward Air, indicating that it is currently the more affordable of the two stocks.
Forward Air beats Hub Group on 9 of the 16 factors compared between the two stocks.
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.
About Forward Air
Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United State and Canada. The company operates through four segments: Expedited Less-than-truckload (LTL), Truckload Premium Services (TLS), Intermodal, and Pool Distribution (Pool). The Expedited LTL segment provides expedited regional, inter-regional, and national LTL services, as well as local pick-up and delivery services. It also offers shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling services. This segment provides its transportation services through a network of terminals located at or near airports. The TLS segment offers expedited truckload brokerage, dedicated fleet, and high security and temperature-controlled logistics services. The Intermodal segment provides intermodal container drayage services; and contract, and container freight station warehouse and handling services. The Pool segment offers high-frequency handling and distribution of time-sensitive products to various destinations. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.
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