BEST (BSTI) versus Echo Global Logistics (ECHO) Financial Analysis

BEST (NYSE: BSTI) and Echo Global Logistics (NASDAQ:ECHO) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

13.3% of BEST shares are held by institutional investors. Comparatively, 95.1% of Echo Global Logistics shares are held by institutional investors. 8.1% of Echo Global Logistics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares BEST and Echo Global Logistics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BEST $1.30 billion 2.73 -$201.12 million N/A N/A
Echo Global Logistics $1.72 billion 0.44 $1.58 million ($0.12) -223.75

Echo Global Logistics has higher revenue and earnings than BEST.

Analyst Recommendations

This is a summary of current recommendations and price targets for BEST and Echo Global Logistics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BEST 0 0 6 0 3.00
Echo Global Logistics 0 3 6 0 2.67

BEST presently has a consensus price target of $16.20, suggesting a potential upside of 67.88%. Echo Global Logistics has a consensus price target of $24.13, suggesting a potential downside of 10.15%. Given BEST’s stronger consensus rating and higher possible upside, research analysts plainly believe BEST is more favorable than Echo Global Logistics.

Profitability

This table compares BEST and Echo Global Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BEST N/A N/A N/A
Echo Global Logistics -0.20% 3.29% 1.45%

Summary

Echo Global Logistics beats BEST on 6 of the 10 factors compared between the two stocks.

BEST Company Profile

BEST Inc. is engaged in providing supply chain solutions. The Company offers a cloud based platform, BEST Cloud which is integration of online and offline retail to offer delivery. It provides technology-enabled solutions to its users. The Company’s service offerings include BEST supply chain management, BEST express, BEST freight, BEST store+, BEST global, BEST cargo and BEST Ucargo. BEST supply chain management offers its solutions in a range of categories, including: cloud OFCs, which offer warehouse management, in-warehouse processing and order fulfillment services to customers; transportation services, which provides transportation services and coordinate shipments to and from locations. It offer transportation services from factories to consumers includes full truckload (FTL), less-than-truckload (LTL), regional distribution, intra-city distribution and other transportation services. BEST store+ offers a door-to-door integrated cross-border supply chain services.

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.

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