Comparing Cargojet (OTCMKTS:CGJTF) & Hub Group (NASDAQ:HUBG)

Cargojet (OTCMKTS:CGJTF) and Hub Group (NASDAQ:HUBG) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Dividends

Cargojet pays an annual dividend of $1.12 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 1.5%. Cargojet pays out 56.9% 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.

Insider and Institutional Ownership

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

Earnings & Valuation

This table compares Cargojet and Hub Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cargojet	$710.45 million	1.22	$57.40 million	$1.97	29.58
Hub Group	$3.95 billion	0.51	$103.99 million	$1.73	18.91

Hub Group has higher revenue and earnings than Cargojet. Hub Group is trading at a lower price-to-earnings ratio than Cargojet, 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 Cargojet and Hub Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cargojet	0	1	2	0	2.67
Hub Group	1	9	6	0	2.31

Hub Group has a consensus price target of $42.69, indicating a potential upside of 30.48%. Given Hub Group’s higher probable upside, analysts plainly believe Hub Group is more favorable than Cargojet.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cargojet	4.48%	6.75%	2.40%
Hub Group	N/A	N/A	N/A

Summary

Cargojet beats Hub Group on 8 of the 15 factors compared between the two stocks.

About Cargojet

Cargojet Inc. provides time sensitive overnight air cargo services and carriers in Canada. It operates domestic air cargo network services between 16 Canadian cities; and provides dedicated aircraft to customers on an aircraft, crew, maintenance, and insurance basis operating between points in Canada, North and South America, and Europe. The company operates scheduled international routes for various cargo customers between the United States and Bermuda; and between Canada, the United Kingdom, and Germany. In addition, it offers aircraft to customers on an ad hoc charter basis operating between points in Canada, the United States, and other international destinations; and specialty charter services for livestock shipments, military equipment movements, emergency relief supplies, and virtually large shipments across North America, South America, the Caribbean, and Europe. Further, the company is involved in the aircraft operation and maintenance, flight planning and dispatch, crew planning and training, ground handling, and commercial airline cargo management businesses. The company operates a fleet of 41 aircraft. Cargojet Inc. was founded in 2001 and is headquartered in Mississauga, 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.