Echo Global Logistics (NASDAQ: ECHO) and Macquarie Infrastructure Corp (NYSE:MIC) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Insider and Institutional Ownership

87.5% of Echo Global Logistics shares are held by institutional investors. Comparatively, 80.5% of Macquarie Infrastructure Corp shares are held by institutional investors. 8.1% of Echo Global Logistics shares are held by insiders. Comparatively, 5.9% of Macquarie Infrastructure Corp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Macquarie Infrastructure Corp pays an annual dividend of $5.52 per share and has a dividend yield of 7.6%. Echo Global Logistics does not pay a dividend. Macquarie Infrastructure Corp pays out 255.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macquarie Infrastructure Corp has increased its dividend for 5 consecutive years.

Profitability

This table compares Echo Global Logistics and Macquarie Infrastructure Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Echo Global Logistics -0.21% 3.22% 1.47%
Macquarie Infrastructure Corp 5.93% 3.63% 1.38%

Volatility & Risk

Echo Global Logistics has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Macquarie Infrastructure Corp has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Echo Global Logistics and Macquarie Infrastructure Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Echo Global Logistics 0 3 5 0 2.63
Macquarie Infrastructure Corp 0 1 3 0 2.75

Echo Global Logistics presently has a consensus target price of $20.29, indicating a potential upside of 4.57%. Macquarie Infrastructure Corp has a consensus target price of $89.33, indicating a potential upside of 22.64%. Given Macquarie Infrastructure Corp’s stronger consensus rating and higher possible upside, analysts plainly believe Macquarie Infrastructure Corp is more favorable than Echo Global Logistics.

Earnings and Valuation

This table compares Echo Global Logistics and Macquarie Infrastructure Corp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Echo Global Logistics $1.75 billion 0.32 $31.70 million ($0.13) -149.22
Macquarie Infrastructure Corp $1.75 billion 3.44 $604.97 million $2.16 33.72

Echo Global Logistics is trading at a lower price-to-earnings ratio than Macquarie Infrastructure Corp, indicating that it is currently the more affordable of the two stocks.

Summary

Macquarie Infrastructure Corp beats Echo Global Logistics on 9 of the 15 factors compared between the two stocks.

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.

About Macquarie Infrastructure Corp

Macquarie Infrastructure Corporation owns and operates a group of businesses that provide services, such as bulk liquid terminalling and handling services. The Company operates through four segments: International-Matex Tank Terminals (IMTT), Atlantic Aviation, Contracted Power (CP) and MIC Hawaii. Its group of businesses also provides services, such as aircraft fueling, CP generation and utility gas services. Its group of businesses provides services to businesses, government agencies and individuals in the United States. IMTT segment provides bulk liquid terminal services in the United States. As of December 31, 2016, Atlantic Aviation operated Fixed based operations (FBOs) at 69 airports in the United States. The businesses in its CP segment sell electricity to off-takers, pursuant to multi-year contracts. MIC Hawaii segment consists of Hawaii Gas and several smaller businesses. Hawaii Gas consists of a gas utility and a liquefied petroleum gas (LPG) distribution business.

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