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

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

Insider & Institutional Ownership

46.8% of Hub Group shares are owned by institutional investors. Comparatively, 97.0% of Forward Air shares are owned by institutional investors. 3.5% of Hub Group shares are owned by insiders. Comparatively, 15.7% of Forward Air shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hub Group	N/A	N/A	N/A
Forward Air	-10.10%	78.18%	0.40%

Earnings & Valuation

This table compares Hub Group and Forward Air”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hub Group	$3.73 billion	0.40	$103.99 million	$1.73	14.11
Forward Air	$2.50 billion	0.23	-$107.80 million	($8.04)	-2.13

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.

Risk and Volatility

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

Analyst Recommendations

This is a summary of current ratings for Hub Group and Forward Air, as reported by MarketBeat.com.

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

Hub Group presently has a consensus target price of $40.73, suggesting a potential upside of 66.85%. Forward Air has a consensus target price of $26.50, suggesting a potential upside of 54.43%. Given Hub Group’s higher possible upside, equities analysts plainly believe Hub Group is more favorable than Forward Air.

Summary

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

About Hub Group

Hub Group, Inc. is a transportation management and logistics company that helps businesses move freight and manage supply chains. Its services include intermodal transportation, truck brokerage, dedicated trucking, less-than-truckload shipping and managed transportation. The company combines rail and truck services with logistics capabilities, including freight planning, shipment visibility and supply chain management. Hub Group serves customers across North America and supports international freight movements through its logistics network.

About Forward Air

Forward Air Corporation is a transportation and logistics company that specializes in expedited freight and time-sensitive shipments. Its services include less-than-truckload transportation, truckload services, intermodal drayage, freight forwarding and other logistics solutions. The company’s ground transportation network connects major North American markets and includes services supporting air cargo shipments. Following its acquisition of Omni Logistics, Forward Air also offers international freight forwarding, customs brokerage and related supply-chain services.