YRC Worldwide (YRCW) and Hub Group (HUBG) Critical Survey

YRC Worldwide (NASDAQ: YRCW) and Hub Group (NASDAQ:HUBG) are both small-cap transportation companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for YRC Worldwide and Hub Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
YRC Worldwide 0 2 3 0 2.60
Hub Group 1 7 4 0 2.25

YRC Worldwide currently has a consensus price target of $16.33, indicating a potential upside of 19.75%. Hub Group has a consensus price target of $44.63, indicating a potential downside of 0.06%. Given YRC Worldwide’s stronger consensus rating and higher possible upside, research analysts clearly believe YRC Worldwide is more favorable than Hub Group.

Risk & Volatility

YRC Worldwide has a beta of 3.73, indicating that its stock price is 273% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Earnings and Valuation

This table compares YRC Worldwide and Hub Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
YRC Worldwide $4.80 billion 0.10 $254.10 million ($0.02) -681.66
Hub Group $3.73 billion 0.41 $146.62 million $1.61 27.73

YRC Worldwide has higher revenue and earnings than Hub Group. YRC Worldwide 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 YRC Worldwide and Hub Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
YRC Worldwide N/A -0.70% 0.16%
Hub Group 1.39% 8.97% 4.23%

Insider & Institutional Ownership

83.7% of YRC Worldwide shares are owned by institutional investors. Comparatively, 90.4% of Hub Group shares are owned by institutional investors. 3.7% of YRC Worldwide shares are owned by company insiders. Comparatively, 5.4% of Hub Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Hub Group beats YRC Worldwide on 8 of the 14 factors compared between the two stocks.

About YRC Worldwide

YRC Worldwide Inc. is a holding company. The Company, through its subsidiaries, offers its customers a range of transportation services. The Company operates through two segments: YRC Freight and Regional Transportation. The Company has less-than-truckload (LTL) networks in North America with local, regional, national and international capabilities. YRC Freight segment offers a range of services for the transportation of industrial, commercial and retail goods in national, regional and international markets, primarily through the operation of owned or leased equipment in its North American ground distribution network. It provides transportation services for various categories of goods, which include apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal and metal products. The Company’s Regional Transportation segment consists of USF Holland LLC (Holland), New Penn Motor Express, LLC (New Penn) and USF Reddaway Inc. (Reddaway).

About Hub Group

Hub Group, Inc. is an asset-light freight transportation management company. The Company offers intermodal, truck brokerage and logistics services. It operates through two business segments: Mode and Hub. The Mode segment markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents entering into contractual arrangements with Mode Transportation, LLC (Mode LLC). The Mode segment also operates a temperature protected services division. The Hub segment provides intermodal, truck brokerage and logistics services through a network of operating centers throughout the United States, Canada and Mexico. The Hub segment services customers in a range of industries, including consumer products, retail and durable goods. It operates through a network of operating centers and independent business owners. The Company also provides drayage services with its own drayage operations.

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