Hub Group (NASDAQ:HUBG) vs. Avis Budget Group (NASDAQ:CAR) Critical Review

Hub Group (NASDAQ:HUBG – Get Free Report) and Avis Budget Group (NASDAQ:CAR – Get Free Report) are both mid-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Profitability

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

Valuation & Earnings

This table compares Hub Group and Avis Budget Group”s top-line revenue, earnings per share (EPS) and valuation.

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

Insider and Institutional Ownership

46.8% of Hub Group shares are owned by institutional investors. Comparatively, 96.3% of Avis Budget Group shares are owned by institutional investors. 3.5% of Hub Group shares are owned by insiders. Comparatively, 50.5% of Avis Budget Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Hub Group has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Hub Group and Avis Budget Group, as provided by MarketBeat.

Hub Group presently has a consensus target price of $43.14, suggesting a potential downside of 4.00%. Avis Budget Group has a consensus target price of $131.50, suggesting a potential downside of 19.54%. Given Hub Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe Hub Group is more favorable than Avis Budget Group.

Summary

Hub Group beats Avis Budget Group on 9 of the 13 factors compared between the two stocks.

About Hub Group

(Get Free Report)

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 Avis Budget Group

(Get Free Report)

Avis Budget Group, Inc. engages in the provision of vehicle sharing and rental services. It operates through the following segments: Americas, International, and Corporate and Other. The Americas segment includes the vehicle rental and car sharing operations in North America, South America, Central America, and the Caribbean. The International segment is involved in the vehicle rental and car sharing operations in Europe, the Middle East, Africa, Asia, and Australasia. The company was founded in 1946 and is headquartered in Parsippany, NJ.