Hub Group (NASDAQ:HUBG) vs. Dynagas LNG Partners (NYSE:DLNG) Critical Survey

Dynagas LNG Partners (NYSE:DLNG) and Hub Group (NASDAQ:HUBG) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Insider and Institutional Ownership

46.8% of Hub Group shares are held by institutional investors. 3.5% of Hub Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Dynagas LNG Partners has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dynagas LNG Partners and Hub Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynagas LNG Partners	0	0	0	0	0.00
Hub Group	0	4	5	1	2.70

Hub Group has a consensus target price of $40.35, indicating a potential upside of 7.80%. Given Hub Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hub Group is more favorable than Dynagas LNG Partners.

Profitability

This table compares Dynagas LNG Partners and Hub Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynagas LNG Partners	33.92%	15.92%	6.68%
Hub Group	2.65%	6.81%	4.06%

Dividends

Dynagas LNG Partners pays an annual dividend of $0.20 per share and has a dividend yield of 5.3%. Hub Group pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. Dynagas LNG Partners pays out 18.3% of its earnings in the form of a dividend. Hub Group pays out 30.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dynagas LNG Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Dynagas LNG Partners and Hub Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynagas LNG Partners	$156.40 million	0.88	$51.55 million	$1.09	3.44
Hub Group	$3.95 billion	0.58	$103.99 million	$1.65	22.68

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

Summary

Hub Group beats Dynagas LNG Partners on 11 of the 17 factors compared between the two stocks.

About Dynagas LNG Partners

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. The company owns and operates liquefied natural gas (LNG) carriers. Its fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.

About Hub Group

Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America. The company's transportation services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel, and international transportation. Its logistics services comprise full outsource logistics solution, transportation management, freight consolidation, warehousing and fulfillment, final mile delivery, and parcel and international services. The company also provides dry van, expedited, less-than-truckload, refrigerated, and flatbed truck brokerage services. It offers a fleet of approximately 2,300 tractors, 460 independent owner-operators, and 4,300 trailers to its customers, as well as the management and infrastructure. The company serves a range of industries, including retail, consumer products, and durable goods. As of December 31, 2023, it owned approximately 50,000 dry, 53-foot containers, as well as 900 refrigerated and 53-foot containers. The company was founded in 1971 and is headquartered in Oak Brook, Illinois.