Contrasting Hub Group (NASDAQ:HUBG) and GXO Logistics (NYSE:GXO)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for GXO Logistics and Hub Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GXO Logistics	0	3	12	0	2.80
Hub Group	1	9	6	0	2.31

GXO Logistics currently has a consensus target price of $63.93, suggesting a potential upside of 39.50%. Hub Group has a consensus target price of $43.31, suggesting a potential upside of 20.17%. Given GXO Logistics’ stronger consensus rating and higher possible upside, research analysts clearly believe GXO Logistics is more favorable than Hub Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GXO Logistics	0.96%	10.57%	2.61%
Hub Group	N/A	N/A	N/A

Earnings & Valuation

This table compares GXO Logistics and Hub Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GXO Logistics	$13.64 billion	0.39	$32.00 million	$1.13	40.55
Hub Group	$3.95 billion	0.56	$103.99 million	$1.73	20.83

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

Insider & Institutional Ownership

90.7% of GXO Logistics shares are owned by institutional investors. Comparatively, 46.8% of Hub Group shares are owned by institutional investors. 0.2% of GXO Logistics shares are owned by insiders. Comparatively, 3.5% of Hub Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

GXO Logistics has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Summary

GXO Logistics beats Hub Group on 10 of the 14 factors compared between the two stocks.

About GXO Logistics

GXO Logistics, Inc., together with its subsidiaries, provides logistics services worldwide. The company provides warehousing and distribution, order fulfilment, e-commerce, reverse logistics, and other supply chain services. As of December 31, 2023, it operated in approximately 974 facilities. The company serves various customers in the e-commerce, omnichannel retail, technology and consumer electronics, food and beverage, industrial and manufacturing, consumer packaged goods, and others. GXO Logistics, Inc. was incorporated in 2021 and is headquartered in Greenwich, Connecticut.

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.