Expeditors International of Washington (NASDAQ:EXPD) and Hub Group (NASDAQ:HUBG) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Analyst Ratings
This is a summary of recent ratings and price targets for Expeditors International of Washington and Hub Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Expeditors International of Washington | 4 | 3 | 0 | 0 | 1.43 |
Hub Group | 0 | 4 | 8 | 0 | 2.67 |
Expeditors International of Washington currently has a consensus target price of $83.3333, suggesting a potential downside of 11.11%. Hub Group has a consensus target price of $60.6667, suggesting a potential upside of 4.06%. Given Hub Group's stronger consensus rating and higher possible upside, analysts clearly believe Hub Group is more favorable than Expeditors International of Washington.
Volatility and Risk
Expeditors International of Washington has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Hub Group has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Valuation & Earnings
This table compares Expeditors International of Washington and Hub Group's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Expeditors International of Washington | $8.18 billion | 1.94 | $590.40 million | $3.45 | 27.17 |
Hub Group | $3.67 billion | 0.54 | $107.17 million | $3.39 | 17.20 |
Expeditors International of Washington has higher revenue and earnings than Hub Group. Hub Group is trading at a lower price-to-earnings ratio than Expeditors International of Washington, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
91.2% of Expeditors International of Washington shares are owned by institutional investors. Comparatively, 89.2% of Hub Group shares are owned by institutional investors. 1.2% of Expeditors International of Washington shares are owned by insiders. Comparatively, 5.1% of Hub Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Expeditors International of Washington and Hub Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Expeditors International of Washington | 7.06% | 28.55% | 16.53% |
Hub Group | 2.30% | 8.05% | 4.35% |
Summary
Expeditors International of Washington beats Hub Group on 9 of the 14 factors compared between the two stocks.