PowerFleet (NASDAQ:AIOT) vs. Hub Group (NASDAQ:HUBG) Critical Analysis

Hub Group (NASDAQ:HUBG) and PowerFleet (NASDAQ:AIOT) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

Hub Group has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, PowerFleet has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hub Group	2.82%	6.58%	3.97%
PowerFleet	-9.70%	-9.00%	-4.48%

Institutional and Insider Ownership

46.8% of Hub Group shares are owned by institutional investors. Comparatively, 73.4% of PowerFleet shares are owned by institutional investors. 3.5% of Hub Group shares are owned by company insiders. Comparatively, 6.3% of PowerFleet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Hub Group and PowerFleet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hub Group	$3.73 billion	0.81	$103.99 million	$1.73	28.72
PowerFleet	$425.87 million	1.61	-$50.99 million	($0.31)	-16.52

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hub Group and PowerFleet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hub Group	0	7	9	1	2.65
PowerFleet	1	1	5	0	2.57

Hub Group presently has a consensus price target of $46.20, suggesting a potential downside of 7.00%. PowerFleet has a consensus price target of $10.50, suggesting a potential upside of 105.08%. Given PowerFleet’s higher probable upside, analysts clearly believe PowerFleet is more favorable than Hub Group.

Summary

Hub Group beats PowerFleet on 10 of the 15 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 PowerFleet

PowerFleet, Inc. engages in the provision of fleet management solutions for logistics, industrial, and vehicles. It offers wireless Internet of Things and machine to machine solutions for securing, controlling, tracking, and managing enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicle and truck fleets. It operates through the following geographical segments: United States, Israel, and Other. The company was founded in 1993 and is headquartered in Woodcliff Lake, NJ.