Echo Global Logistics (NASDAQ: ECHO) and Macquarie Infrastructure (NYSE:MIC) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.
Macquarie Infrastructure pays an annual dividend of $5.52 per share and has a dividend yield of 7.8%. Echo Global Logistics does not pay a dividend. Macquarie Infrastructure pays out 255.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macquarie Infrastructure has raised its dividend for 5 consecutive years.
Volatility and Risk
Echo Global Logistics has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Macquarie Infrastructure has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Earnings & Valuation
This table compares Echo Global Logistics and Macquarie Infrastructure’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Echo Global Logistics||$1.75 billion||0.39||$31.70 million||($0.12)||-198.75|
|Macquarie Infrastructure||$1.75 billion||3.32||$604.97 million||$2.16||32.56|
Echo Global Logistics is trading at a lower price-to-earnings ratio than Macquarie Infrastructure, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Echo Global Logistics and Macquarie Infrastructure, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Echo Global Logistics||0||3||6||0||2.67|
Echo Global Logistics currently has a consensus price target of $23.13, suggesting a potential downside of 3.04%. Macquarie Infrastructure has a consensus price target of $89.33, suggesting a potential upside of 27.00%. Given Macquarie Infrastructure’s stronger consensus rating and higher probable upside, analysts clearly believe Macquarie Infrastructure is more favorable than Echo Global Logistics.
This table compares Echo Global Logistics and Macquarie Infrastructure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Echo Global Logistics||-0.20%||3.29%||1.45%|
Insider and Institutional Ownership
86.1% of Echo Global Logistics shares are owned by institutional investors. Comparatively, 80.6% of Macquarie Infrastructure shares are owned by institutional investors. 8.1% of Echo Global Logistics shares are owned by company insiders. Comparatively, 5.9% of Macquarie Infrastructure shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Macquarie Infrastructure beats Echo Global Logistics on 10 of the 15 factors compared between the two stocks.
About Echo Global Logistics
Echo Global Logistics, Inc. is a provider of technology-enabled transportation and supply chain management solutions. The Company utilizes a technology platform to compile and analyze data from its multi-modal network of transportation providers to facilitate its transportation and logistics services. The Company focuses primarily on arranging transportation by truckload (TL) and less than truckload (LTL) carriers. It also offers intermodal (which involves moving a shipment by rail and truck), small parcel, domestic air, expedited and international transportation services. The Company’s core logistics services include rate negotiation, shipment execution and tracking, carrier selection and management, routing compliance freight bill payment and audit, payment and performance management and reporting functions.
About Macquarie Infrastructure
Macquarie Infrastructure Corporation owns and operates a group of businesses that provide services, such as bulk liquid terminalling and handling services. The Company operates through four segments: International-Matex Tank Terminals (IMTT), Atlantic Aviation, Contracted Power (CP) and MIC Hawaii. Its group of businesses also provides services, such as aircraft fueling, CP generation and utility gas services. Its group of businesses provides services to businesses, government agencies and individuals in the United States. IMTT segment provides bulk liquid terminal services in the United States. As of December 31, 2016, Atlantic Aviation operated Fixed based operations (FBOs) at 69 airports in the United States. The businesses in its CP segment sell electricity to off-takers, pursuant to multi-year contracts. MIC Hawaii segment consists of Hawaii Gas and several smaller businesses. Hawaii Gas consists of a gas utility and a liquefied petroleum gas (LPG) distribution business.
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