Analyzing GXO Logistics (NYSE:GXO) and Hub Group (NASDAQ:HUBG)

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

Profitability

This table compares Hub Group and GXO Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hub Group	N/A	N/A	N/A
GXO Logistics	0.96%	10.57%	2.61%

Institutional & Insider Ownership

46.8% of Hub Group shares are owned by institutional investors. Comparatively, 90.7% of GXO Logistics shares are owned by institutional investors. 3.5% of Hub Group shares are owned by insiders. Comparatively, 0.2% of GXO Logistics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hub Group and GXO Logistics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hub Group	1	9	6	0	2.31
GXO Logistics	0	3	12	0	2.80

Hub Group presently has a consensus target price of $43.31, indicating a potential upside of 18.07%. GXO Logistics has a consensus target price of $63.93, indicating a potential upside of 32.11%. Given GXO Logistics’ stronger consensus rating and higher possible upside, analysts clearly believe GXO Logistics is more favorable than Hub Group.

Valuation and Earnings

This table compares Hub Group and GXO Logistics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hub Group	$3.95 billion	0.57	$103.99 million	$1.73	21.20
GXO Logistics	$13.18 billion	0.42	$32.00 million	$1.13	42.82

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

Risk and Volatility

Hub Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, GXO Logistics has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Summary

GXO Logistics beats Hub Group on 10 of the 14 factors compared between the two stocks.

About Hub Group

Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America. The company's transportation services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel, and international transportation. Its logistics services comprise full outsource logistics solution, transportation management, freight consolidation, warehousing and fulfillment, final mile delivery, and parcel and international services. The company also provides dry van, expedited, less-than-truckload, refrigerated, and flatbed truck brokerage services. It offers a fleet of approximately 2,300 tractors, 460 independent owner-operators, and 4,300 trailers to its customers, as well as the management and infrastructure. The company serves a range of industries, including retail, consumer products, and durable goods. As of December 31, 2023, it owned approximately 50,000 dry, 53-foot containers, as well as 900 refrigerated and 53-foot containers. The company was founded in 1971 and is headquartered in Oak Brook, Illinois.

About GXO Logistics

GXO Logistics, Inc., together with its subsidiaries, provides logistics services worldwide. The company provides warehousing and distribution, order fulfilment, e-commerce, reverse logistics, and other supply chain services. As of December 31, 2023, it operated in approximately 974 facilities. The company serves various customers in the e-commerce, omnichannel retail, technology and consumer electronics, food and beverage, industrial and manufacturing, consumer packaged goods, and others. GXO Logistics, Inc. was incorporated in 2021 and is headquartered in Greenwich, Connecticut.