Royal Mail (OTCMKTS:ROYMY – Get Free Report) and Hub Group (NASDAQ:HUBG – Get Free Report) are both mid-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and price targets for Royal Mail and Hub Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Royal Mail | 0 | 0 | 0 | 0 | 0.00 |
| Hub Group | 1 | 9 | 6 | 0 | 2.31 |
Hub Group has a consensus target price of $43.31, indicating a potential downside of 6.82%. Given Hub Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hub Group is more favorable than Royal Mail.
Insider and Institutional Ownership
Profitability
This table compares Royal Mail and Hub Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Royal Mail | N/A | N/A | N/A |
| Hub Group | N/A | N/A | N/A |
Earnings & Valuation
This table compares Royal Mail and Hub Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Royal Mail | $15.94 billion | 0.25 | $67.88 million | N/A | N/A |
| Hub Group | $3.95 billion | 0.72 | $103.99 million | $1.73 | 26.86 |
Hub Group has lower revenue, but higher earnings than Royal Mail.
Summary
Hub Group beats Royal Mail on 7 of the 8 factors compared between the two stocks.
About Royal Mail
International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider in the United Kingdom and internationally. The company offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. It also provides services for the collection, sorting, and delivery of parcels and letters. In addition, the company operates ground-based parcel delivery networks in Europe that covers 40 countries and nation states. Further, it provides express parcel delivery and logistics services. Additionally, the company engages in property holdings and facilities management activities. It serves consumers, and small and medium-sized enterprises. The company was formerly known as Royal Mail plc and changed its name to International Distributions Services plc in October 2022. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom.
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.
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