Comparing Grab (NASDAQ:GRAB) and Heartland Express (NASDAQ:HTLD)

Heartland Express (NASDAQ:HTLD) and Grab (NASDAQ:GRAB) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Earnings and Valuation

This table compares Heartland Express and Grab”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heartland Express	$805.71 million	1.00	-$52.45 million	($0.16)	-65.25
Grab	$3.37 billion	4.07	$268.00 million	$0.05	66.90

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

Institutional & Insider Ownership

53.4% of Heartland Express shares are held by institutional investors. Comparatively, 55.5% of Grab shares are held by institutional investors. 41.6% of Heartland Express shares are held by insiders. Comparatively, 3.6% of Grab shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Heartland Express and Grab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heartland Express	-1.77%	0.30%	0.20%
Grab	14.76%	8.45%	4.57%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Heartland Express and Grab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heartland Express	3	4	0	0	1.57
Grab	0	2	8	1	2.91

Heartland Express presently has a consensus price target of $11.80, suggesting a potential upside of 13.03%. Grab has a consensus price target of $5.67, suggesting a potential upside of 69.47%. Given Grab’s stronger consensus rating and higher possible upside, analysts plainly believe Grab is more favorable than Heartland Express.

Risk & Volatility

Heartland Express has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Summary

Grab beats Heartland Express on 13 of the 15 factors compared between the two stocks.

About Heartland Express

Heartland Express, Inc. is a truckload transportation company headquartered in North Liberty, Iowa. The company provides freight services primarily using dry-van equipment, moving goods for shippers across a range of industries. Founded in 1978, Heartland Express has expanded through acquisitions and operates under brands that include Heartland Express, CFI, Millis Transfer and Smith Transport. Its services include regional and long-haul transportation, with operations serving customers across the United States and cross-border markets in North America.

About Grab

Grab Holdings Limited operates a digital platform that connects consumers, driver- and merchant-partners across Southeast Asia. Its services include ride-hailing and other mobility options, food and grocery delivery, and parcel delivery, offered through the Grab app. The company also provides digital financial services, including payments and lending, and works with partners on products such as insurance and digital banking. Its offerings and availability vary by market. Grab began in Malaysia in 2012 as MyTeksi, a taxi-booking service founded by Anthony Tan and Tan Hooi Ling, and later expanded across the region.