Addentax Group (NASDAQ:ATXG) & Forward Air (NASDAQ:FWRD) Head to Head Comparison

Addentax Group (NASDAQ:ATXG) and Forward Air (NASDAQ:FWRD) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Addentax Group and Forward Air, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Addentax Group	1	0	0	0	1.00
Forward Air	1	1	3	0	2.40

Forward Air has a consensus price target of $28.00, suggesting a potential upside of 85.92%. Given Forward Air’s stronger consensus rating and higher possible upside, analysts plainly believe Forward Air is more favorable than Addentax Group.

Insider and Institutional Ownership

10.1% of Addentax Group shares are owned by institutional investors. Comparatively, 97.0% of Forward Air shares are owned by institutional investors. 2.7% of Addentax Group shares are owned by company insiders. Comparatively, 15.7% of Forward Air shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Addentax Group and Forward Air’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Addentax Group	-21.05%	-9.16%	-7.22%
Forward Air	-11.37%	-19.49%	-0.66%

Volatility and Risk

Addentax Group has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500. Comparatively, Forward Air has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Valuation & Earnings

This table compares Addentax Group and Forward Air”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Addentax Group	$5.37 million	0.74	-$4.47 million	($3.92)	-0.86
Forward Air	$2.52 billion	0.19	-$107.80 million	($8.90)	-1.69

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

Summary

Forward Air beats Addentax Group on 9 of the 14 factors compared between the two stocks.

About Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.

About Forward Air

Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United States and Canada. It operates in two segments, Expedited Freight and Intermodal. The Expedited Freight segment provides expedited regional, inter-regional, and national less-than-truckload services; local pick-up and delivery services; and other services, which include shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling. This segment offers expedited truckload brokerage, dedicated fleet, and high security and temperature-controlled logistics services. The Intermodal segment provides intermodal container drayage services; and contract and container freight station warehouse and handling services. It serves freight forwarders, third-party logistics companies, integrated air cargo carriers and passenger, passenger and cargo airlines, steamship lines, and retailers. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.