Critical Survey: Kuehne & Nagel International (OTCMKTS:KHNGY) and Hub Group (NASDAQ:HUBG)

Kuehne & Nagel International (OTCMKTS:KHNGY) and Hub Group (NASDAQ:HUBG) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Volatility and Risk

Kuehne & Nagel International has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Dividends

Kuehne & Nagel International pays an annual dividend of $0.93 per share and has a dividend yield of 1.9%. Hub Group pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. Kuehne & Nagel International pays out 52.8% 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.

Valuation and Earnings

This table compares Kuehne & Nagel International and Hub Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuehne & Nagel International	$29.53 billion	0.98	$1.06 billion	$1.76	27.21
Hub Group	$3.95 billion	0.67	$103.99 million	$1.73	24.82

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

Institutional & Insider Ownership

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

Profitability

This table compares Kuehne & Nagel International and Hub Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kuehne & Nagel International	3.52%	38.37%	7.12%
Hub Group	2.82%	6.58%	3.97%

Analyst Ratings

This is a summary of recent ratings for Kuehne & Nagel International and Hub Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuehne & Nagel International	2	2	2	1	2.29
Hub Group	1	9	7	0	2.35

Hub Group has a consensus price target of $43.14, suggesting a potential upside of 0.50%. Given Hub Group’s stronger consensus rating and higher possible upside, analysts plainly believe Hub Group is more favorable than Kuehne & Nagel International.

Summary

Kuehne & Nagel International beats Hub Group on 10 of the 17 factors compared between the two stocks.

About Kuehne & Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.

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.