Analyzing ArcBest Corporation (ARCB) and Hub Group (HUBG)
ArcBest Corporation (NASDAQ: ARCB) and Hub Group (NASDAQ:HUBG) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Valuation and Earnings
This table compares ArcBest Corporation and Hub Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|ArcBest Corporation||$2.77 billion||0.30||$146.83 million||$0.86||37.91|
|Hub Group||$3.73 billion||0.40||$146.62 million||$1.61||26.89|
ArcBest Corporation has higher revenue, but lower earnings than Hub Group. Hub Group is trading at a lower price-to-earnings ratio than ArcBest Corporation, indicating that it is currently the more affordable of the two stocks.
ArcBest Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Hub Group does not pay a dividend. ArcBest Corporation pays out 37.2% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for ArcBest Corporation and Hub Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ArcBest Corporation presently has a consensus price target of $27.40, suggesting a potential downside of 15.95%. Hub Group has a consensus price target of $44.78, suggesting a potential upside of 3.41%. Given Hub Group’s stronger consensus rating and higher probable upside, analysts clearly believe Hub Group is more favorable than ArcBest Corporation.
This table compares ArcBest Corporation and Hub Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
85.2% of ArcBest Corporation shares are held by institutional investors. Comparatively, 90.0% of Hub Group shares are held by institutional investors. 1.0% of ArcBest Corporation shares are held by company insiders. Comparatively, 5.4% of Hub Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
ArcBest Corporation has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Hub Group beats ArcBest Corporation on 12 of the 16 factors compared between the two stocks.
ArcBest Corporation Company Profile
ArcBest Corporation is a holding company of businesses providing integrated logistics solutions. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. Its ArcBest segment includes truckload, expedite, international, warehousing, freight transportation, management services and moving services. Its FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles to customers in the United States and Canada through a network of third-party service providers.
Hub Group Company Profile
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.
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