Critical Analysis: Hub Group (NASDAQ:HUBG) versus Jungheinrich (OTCMKTS:JGHAF)

Hub Group (NASDAQ:HUBG) and Jungheinrich (OTCMKTS:JGHAF) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Insider & Institutional Ownership

46.8% of Hub Group shares are owned by institutional investors. 3.5% of Hub Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Hub Group and Jungheinrich, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hub Group	1	6	6	1	2.50
Jungheinrich	0	0	0	0	0.00

Hub Group currently has a consensus price target of $39.64, indicating a potential upside of 10.16%. Given Hub Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Hub Group is more favorable than Jungheinrich.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hub Group	2.65%	6.81%	4.06%
Jungheinrich	N/A	N/A	N/A

Volatility & Risk

Hub Group has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Jungheinrich has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500.

Earnings & Valuation

This table compares Hub Group and Jungheinrich”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hub Group	$3.95 billion	0.56	$103.99 million	$1.65	21.81
Jungheinrich	$5.84 billion	0.31	$312.72 million	N/A	N/A

Jungheinrich has higher revenue and earnings than Hub Group.

Summary

Hub Group beats Jungheinrich on 11 of the 13 factors compared between the two stocks.

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.

About Jungheinrich

Jungheinrich Aktiengesellschaft, through its subsidiaries, provides products and solutions for the intralogistics sector with a portfolio of material handling equipment, automated systems, and matching services worldwide. It operates in two segments, Intralogistics and Financial Services. The Intralogistics segment engages in the development, production, sale, and short-term rental of new material handling equipment and warehousing equipment products, including automation; sale and short-term leasing of used trucks; and provides spare parts, as well as maintenance and repair services. The Financial Services segment engages in the sales financing and usage transfer of material handling and warehousing equipment products. The company's products include electric and hand pallet trucks, electric pallet stackers; order pickers; reach trucks; very narrow aisle trucks and EKX cold store high rack stacker; electric forklift; tow tractors, tugger train trailers, shuttles, and used forklift trucks. It also offers rental of fleet, and battery and charger; contract and event hire service; automated guided vehicles, conveyor technology, and stacker cranes; lithium-ion and lead-acid batteries; charging technology; powertrain solutions; electric drives/drivetrains; controllers; electromechanics components/control pedals/displays; electric mounting panels; and cable sets. In addition, the company provides warehouse racking and storage services; digital products and software solutions, including warehouse management system, fleet management system, device and process management solutions, and interface management; and wi-fi infrastructure, barcode scanners, and mobile workstations; as well as develops software applications. It distributes its products through its direct sales and service network, as well as through dealers. Jungheinrich Aktiengesellschaft was founded in 1953 and is headquartered in Hamburg, Germany.