Analyzing Air T (NASDAQ:AIRT) & Hub Group (NASDAQ:HUBG)

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

Earnings and Valuation

This table compares Hub Group and Air T”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	0.51	$103.99 million	$1.73	19.08
Air T	$327.09 million	0.25	$77.98 million	$23.59	1.31

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

Profitability

This table compares Hub Group and Air T’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hub Group	N/A	N/A	N/A
Air T	17.17%	176.42%	17.67%

Institutional & Insider Ownership

46.8% of Hub Group shares are held by institutional investors. Comparatively, 8.9% of Air T shares are held by institutional investors. 3.5% of Hub Group shares are held by company insiders. Comparatively, 68.5% of Air T shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Hub Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Air T has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hub Group and Air T, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hub Group	1	9	6	0	2.31
Air T	0	1	0	0	2.00

Hub Group presently has a consensus price target of $43.31, indicating a potential upside of 31.20%. Given Hub Group’s stronger consensus rating and higher possible upside, analysts clearly believe Hub Group is more favorable than Air T.

Summary

Hub Group beats Air T on 9 of the 14 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 Air T

Air T, Inc., through its subsidiaries, provides overnight air cargo, ground equipment sale, and commercial jet engines and parts in the United States and internationally. The Overnight Air Cargo segment offers air express delivery services. As of March 31, 2023, this segment had 85 aircraft under the dry-lease agreements with FedEx. The Ground Equipment Sales segment manufactures, sells, and services aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles, and other specialized equipment. This segment sells its products to passenger and cargo airlines, ground handling companies, the United States Air Force, airports, and industrial customers. The Commercial Aircraft, Engines and Parts segment offers commercial aircraft trading, leasing, and parts solutions; commercial aircraft storage, storage maintenance, and aircraft disassembly/part-out services; commercial aircraft parts sales, exchanges, procurement services, consignment programs, and overhaul and repair services; and aircraft instrumentation, avionics, and a range of electrical accessories for civilian, military transport, regional/commuter and business/commercial jet, and turboprop aircraft. This segment also provides composite aircraft structures, and repair and support services. Air T, Inc. was incorporated in 1980 and is based in Denver, North Carolina.