Analyzing Hub Group (HUBG) and Schneider National (SNDR)

Schneider National (NYSE: SNDR) and Hub Group (NASDAQ:HUBG) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Schneider National and Hub Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schneider National 0 4 7 0 2.64
Hub Group 1 7 4 0 2.25

Schneider National presently has a consensus price target of $24.75, indicating a potential downside of 12.76%. Hub Group has a consensus price target of $47.50, indicating a potential downside of 5.57%. Given Hub Group’s higher possible upside, analysts clearly believe Hub Group is more favorable than Schneider National.

Dividends

Schneider National pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Hub Group does not pay a dividend. Schneider National pays out 22.7% of its earnings in the form of a dividend.

Insider & Institutional Ownership

21.5% of Schneider National shares are held by institutional investors. Comparatively, 93.8% of Hub Group shares are held by institutional investors. 5.4% of Hub Group shares are held 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.

Earnings and Valuation

This table compares Schneider National and Hub Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Schneider National $4.05 billion 1.24 $156.85 million $0.88 32.24
Hub Group $3.57 billion 0.48 $74.80 million $1.60 31.44

Schneider National has higher revenue and earnings than Hub Group. Hub Group is trading at a lower price-to-earnings ratio than Schneider National, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Schneider National and Hub Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Schneider National 3.61% 10.79% 4.79%
Hub Group 1.39% 8.87% 4.05%

Summary

Schneider National beats Hub Group on 10 of the 15 factors compared between the two stocks.

About Schneider National

Schneider National, Inc. is a provider of transportation, logistics and related services. The Company’s transportation solutions include one-way, intermodal, dedicated, bulk, transport management, trans loading services, international services and Schneider payment services. Its supply chain management and consulting services include logistics solution design, global supply chain services, enterprise and market entry assistance, and sourcing and compliance. Schneider Logistics is the subsidiary of the Company, which provides supply chain management technology, managed services, engineering services and freight payment. The Company operates approximately 10,000 tractors, around 28,800 trailers and around 14,300 containers. It has operations in around 36 locations in Canada, the United States and Mexico.

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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