Echo Global Logistics (NASDAQ: ECHO) and Macquarie Infrastructure (NYSE:MIC) are both large-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
This is a summary of current ratings for Echo Global Logistics and Macquarie Infrastructure, as reported by MarketBeat.com.
|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 $24.13, indicating a potential upside of 3.99%. Macquarie Infrastructure has a consensus price target of $89.33, indicating a potential upside of 30.89%. Given Macquarie Infrastructure’s stronger consensus rating and higher possible upside, analysts plainly believe Macquarie Infrastructure is more favorable than Echo Global Logistics.
Volatility and Risk
Echo Global Logistics has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Macquarie Infrastructure has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.
Macquarie Infrastructure pays an annual dividend of $5.52 per share and has a dividend yield of 8.1%. Echo Global Logistics does not pay a dividend. Macquarie Infrastructure pays out 259.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Echo Global Logistics has increased its dividend for 5 consecutive years.
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%|
Institutional & Insider Ownership
86.4% of Echo Global Logistics shares are held by institutional investors. Comparatively, 80.9% of Macquarie Infrastructure shares are held by institutional investors. 8.1% of Echo Global Logistics shares are held by insiders. Comparatively, 5.9% of Macquarie Infrastructure shares are held by 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.
Valuation & Earnings
This table compares Echo Global Logistics and Macquarie Infrastructure’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Echo Global Logistics||$1.72 billion||0.38||$1.58 million||($0.12)||-193.33|
|Macquarie Infrastructure||$1.65 billion||3.49||$156.38 million||$2.13||32.04|
Macquarie Infrastructure has higher revenue, but lower earnings than Echo Global Logistics. 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.
Macquarie Infrastructure beats Echo Global Logistics on 9 of the 17 factors compared between the two stocks.
Echo Global Logistics Company Profile
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.
Macquarie Infrastructure Company Profile
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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