TFI International (NYSE:TFII – Get Free Report) and Hub Group (NASDAQ:HUBG – Get Free Report) are both mid-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Insider and Institutional Ownership
73.3% of TFI International shares are held by institutional investors. Comparatively, 46.8% of Hub Group shares are held by institutional investors. 5.5% of TFI International shares are held by insiders. Comparatively, 3.5% of Hub Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares TFI International and Hub Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TFI International | 4.06% | 14.20% | 5.28% |
| Hub Group | 2.82% | 6.58% | 3.97% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TFI International | 1 | 8 | 10 | 1 | 2.55 |
| Hub Group | 1 | 8 | 8 | 0 | 2.41 |
TFI International currently has a consensus target price of $120.80, indicating a potential upside of 3.73%. Hub Group has a consensus target price of $44.53, indicating a potential upside of 8.46%. Given Hub Group’s higher possible upside, analysts plainly believe Hub Group is more favorable than TFI International.
Volatility & Risk
TFI International has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
Valuation & Earnings
This table compares TFI International and Hub Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TFI International | $8.05 billion | 1.19 | $422.48 million | $3.72 | 31.31 |
| Hub Group | $3.73 billion | 0.67 | $103.99 million | $1.73 | 23.73 |
TFI International has higher revenue and earnings than Hub Group. Hub Group is trading at a lower price-to-earnings ratio than TFI International, indicating that it is currently the more affordable of the two stocks.
Dividends
TFI International pays an annual dividend of $1.88 per share and has a dividend yield of 1.6%. Hub Group pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. TFI International pays out 50.5% 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.
Summary
TFI International beats Hub Group on 15 of the 17 factors compared between the two stocks.
About TFI International
TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States and Canada. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items in North America. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank, container, and dedicated services. This segment also carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2023, it operates 11,455 trucks, 34,599 trailers, and 7,504 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. was founded in 1957 and is headquartered in Saint-Laurent, Canada.
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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