DHL Group (OTCMKTS:DHLGY – Get Free Report) and Hub Group (NASDAQ:HUBG – Get Free Report) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Earnings and Valuation
This table compares DHL Group and Hub Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DHL Group | $93.72 billion | 0.65 | $3.96 billion | $2.22 | 12.29 |
| Hub Group | $3.95 billion | 0.64 | $103.99 million | $1.73 | 23.72 |
Analyst Ratings
This is a summary of current ratings and price targets for DHL Group and Hub Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DHL Group | 0 | 6 | 1 | 1 | 2.38 |
| Hub Group | 1 | 9 | 7 | 0 | 2.35 |
Hub Group has a consensus target price of $43.20, suggesting a potential upside of 5.26%. Given Hub Group’s higher possible upside, analysts plainly believe Hub Group is more favorable than DHL Group.
Profitability
This table compares DHL Group and Hub Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DHL Group | 4.28% | 16.35% | 5.17% |
| Hub Group | 2.82% | 6.58% | 3.97% |
Dividends
DHL Group pays an annual dividend of $0.73 per share and has a dividend yield of 2.7%. Hub Group pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. DHL Group pays out 32.9% of its earnings in the form of a dividend. Hub Group pays out 28.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Risk & Volatility
DHL Group has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Insider and Institutional Ownership
46.8% of Hub Group shares are owned by institutional investors. 3.5% of Hub Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
DHL Group beats Hub Group on 10 of the 17 factors compared between the two stocks.
About DHL Group
Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.
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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