Contrasting Hub Group (NASDAQ:HUBG) & Forward Air (NASDAQ:FWRD)

Forward Air (NASDAQ:FWRD) and Hub Group (NASDAQ:HUBG) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Risk and Volatility

Forward Air has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Insider and Institutional Ownership

97.0% of Forward Air shares are owned by institutional investors. Comparatively, 46.8% of Hub Group shares are owned by institutional investors. 15.7% of Forward Air shares are owned by company insiders. Comparatively, 3.5% of Hub Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Forward Air and Hub Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forward Air	1	0	2	1	2.75
Hub Group	2	7	6	0	2.27

Forward Air currently has a consensus target price of $26.00, indicating a potential upside of 56.25%. Hub Group has a consensus target price of $40.73, indicating a potential upside of 68.16%. Given Hub Group’s higher possible upside, analysts clearly believe Hub Group is more favorable than Forward Air.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Forward Air	-11.37%	-19.49%	-0.66%
Hub Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Forward Air 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
Forward Air	$2.50 billion	0.21	-$107.80 million	($8.90)	-1.87
Hub Group	$3.95 billion	0.38	$103.99 million	$1.73	14.00

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

Summary

Hub Group beats Forward Air on 10 of the 15 factors compared between the two stocks.

About Forward Air

Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United States and Canada. It operates in two segments, Expedited Freight and Intermodal. The Expedited Freight segment provides expedited regional, inter-regional, and national less-than-truckload services; local pick-up and delivery services; and other services, which include shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling. This segment offers expedited truckload brokerage, dedicated fleet, and high security and temperature-controlled logistics services. The Intermodal segment provides intermodal container drayage services; and contract and container freight station warehouse and handling services. It serves freight forwarders, third-party logistics companies, integrated air cargo carriers and passenger, passenger and cargo airlines, steamship lines, and retailers. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.

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.