Critical Contrast: Hub Group (HUBG) vs. Ryder System (R)
Hub Group (NASDAQ: HUBG) and Ryder System (NYSE:R) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
Ryder System pays an annual dividend of $1.84 per share and has a dividend yield of 2.2%. Hub Group does not pay a dividend. Ryder System pays out 44.1% of its earnings in the form of a dividend. Hub Group has increased its dividend for 8 consecutive years.
This table compares Hub Group and Ryder System’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Hub Group and Ryder System’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hub Group||$3.73 billion||0.37||$146.62 million||$1.69||23.79|
|Ryder System||$6.99 billion||0.64||$1.82 billion||$4.17||20.09|
Ryder System has higher revenue and earnings than Hub Group. Ryder System is trading at a lower price-to-earnings ratio than Hub Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Hub Group and Ryder System, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hub Group currently has a consensus price target of $43.00, indicating a potential upside of 6.97%. Ryder System has a consensus price target of $82.60, indicating a potential downside of 1.42%. Given Hub Group’s higher probable upside, research analysts clearly believe Hub Group is more favorable than Ryder System.
Risk & Volatility
Hub Group has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Ryder System has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.
Insider and Institutional Ownership
91.1% of Hub Group shares are held by institutional investors. Comparatively, 89.5% of Ryder System shares are held by institutional investors. 5.4% of Hub Group shares are held by insiders. Comparatively, 2.0% of Ryder System shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Ryder System 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 Ryder System
Ryder System, Inc. is engaged in offering transportation and supply chain management solutions. The Company operates through three segments: Fleet Management Solutions (FMS), which provides leasing, commercial rental, contract maintenance, and contract-related maintenance of trucks, tractors and trailers to customers principally in the United States, Canada and the United Kingdom; Dedicated Transportation Solutions (DTS), which provides vehicles and drivers as part of a dedicated transportation solution in the United States, and Supply Chain Solutions (SCS), which provides supply chain solutions, including distribution and transportation services in North America and Asia. Through its FMS business, the Company provides its customers with various fleet solutions. In addition, it provides its customers to purchase a selection of used trucks, tractors and trailers through its used vehicle sales program. Its customer base includes enterprises operating in various industries.
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