Reviewing Hub Group (HUBG) and Its Peers

Hub Group (NASDAQ: HUBG) is one of 28 publicly-traded companies in the “Ground Freight & Logistics” industry, but how does it weigh in compared to its peers? We will compare Hub Group to related companies based on the strength of its institutional ownership, dividends, risk, earnings, analyst recommendations, profitability and valuation.

Institutional and Insider Ownership

91.1% of Hub Group shares are owned by institutional investors. Comparatively, 71.3% of shares of all “Ground Freight & Logistics” companies are owned by institutional investors. 5.4% of Hub Group shares are owned by company insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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, Hub Group’s peers have a beta of 1.38, suggesting that their average share price is 38% more volatile than the S&P 500.

Profitability

This table compares Hub Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hub Group 1.50% 9.49% 4.46%
Hub Group Competitors 10.86% 15.03% 5.33%

Valuation and Earnings

This table compares Hub Group and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Hub Group $3.73 billion $146.62 million 23.79
Hub Group Competitors $5.92 billion $1.74 billion -4.84

Hub Group’s peers have higher revenue and earnings than Hub Group. Hub Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hub Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hub Group 1 6 3 0 2.20
Hub Group Competitors 181 1290 1790 70 2.53

Hub Group currently has a consensus price target of $43.00, suggesting a potential upside of 6.97%. As a group, “Ground Freight & Logistics” companies have a potential upside of 10.16%. Given Hub Group’s peers stronger consensus rating and higher possible upside, analysts clearly believe Hub Group has less favorable growth aspects than its peers.

Summary

Hub Group peers beat Hub Group on 10 of the 13 factors compared.

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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