XPO Logistics (XPO) vs. Hub Group (HUBG) Critical Survey

XPO Logistics (NYSE: XPO) and Hub Group (NASDAQ:HUBG) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Risk and Volatility

XPO Logistics has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for XPO Logistics and Hub Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XPO Logistics 0 0 17 1 3.06
Hub Group 1 7 4 0 2.25

XPO Logistics currently has a consensus price target of $88.71, indicating a potential downside of 7.47%. Hub Group has a consensus price target of $47.50, indicating a potential downside of 3.06%. Given Hub Group’s higher possible upside, analysts clearly believe Hub Group is more favorable than XPO Logistics.

Profitability

This table compares XPO Logistics and Hub Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
XPO Logistics 1.11% 7.01% 1.90%
Hub Group 1.39% 8.87% 4.05%

Insider and Institutional Ownership

93.9% of Hub Group shares are owned by institutional investors. 15.8% of XPO Logistics shares are owned by insiders. Comparatively, 5.4% of Hub Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares XPO Logistics and Hub Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XPO Logistics $14.62 billion 0.79 $69.00 million $1.20 79.89
Hub Group $3.57 billion 0.47 $74.80 million $1.60 30.63

Hub Group has lower revenue, but higher earnings than XPO Logistics. Hub Group is trading at a lower price-to-earnings ratio than XPO Logistics, indicating that it is currently the more affordable of the two stocks.

Summary

XPO Logistics beats Hub Group on 8 of the 15 factors compared between the two stocks.

XPO Logistics Company Profile

XPO Logistics, Inc. is a global provider of supply chain solutions. The Company operates in two segments: Transportation and Logistics. The Transportation segment provides freight brokerage, last mile, less-than-truckload (LTL), full truckload and global forwarding services. The Logistics segment provides a range of contract logistics services, including highly engineered and customized solutions, value-added warehousing and distribution, cold chain solutions and other inventory solutions. Its freight brokerage operations encompass truck brokerage globally, as well as intermodal, drayage and expedite services in North America. In Logistics segment, it provides warehousing and distribution solutions, such as factory support, aftermarket support, integrated manufacturing, packaging, labeling and transportation. As of December 31, 2016, the Company had more than 10,000 independent owner operators under contract to provide drayage, expedite, last mile and LTL services to its customers.

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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