PowerFleet (NASDAQ:AIOT – Get Free Report) and Hub Group (NASDAQ:HUBG – Get Free Report) are both transportation companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.
Analyst Ratings
This is a summary of recent recommendations for PowerFleet and Hub Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PowerFleet | 1 | 1 | 5 | 0 | 2.57 |
| Hub Group | 0 | 7 | 9 | 1 | 2.65 |
PowerFleet presently has a consensus price target of $10.50, indicating a potential upside of 105.08%. Hub Group has a consensus price target of $46.20, indicating a potential downside of 7.00%. Given PowerFleet’s higher possible upside, equities research analysts plainly believe PowerFleet is more favorable than Hub Group.
Volatility and Risk
Valuation & Earnings
This table compares PowerFleet 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 | |
| PowerFleet | $425.87 million | 1.61 | -$50.99 million | ($0.31) | -16.52 |
| Hub Group | $3.73 billion | 0.81 | $103.99 million | $1.73 | 28.72 |
Hub Group has higher revenue and earnings than PowerFleet. PowerFleet is trading at a lower price-to-earnings ratio than Hub Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PowerFleet and Hub Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PowerFleet | -9.70% | -9.00% | -4.48% |
| Hub Group | 2.82% | 6.58% | 3.97% |
Institutional & Insider Ownership
73.4% of PowerFleet shares are owned by institutional investors. Comparatively, 46.8% of Hub Group shares are owned by institutional investors. 6.3% of PowerFleet 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, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Hub Group beats PowerFleet on 10 of the 15 factors compared between the two stocks.
About PowerFleet
PowerFleet, Inc. engages in the provision of fleet management solutions for logistics, industrial, and vehicles. It offers wireless Internet of Things and machine to machine solutions for securing, controlling, tracking, and managing enterprise assets such as industrial trucks, tractor trailers, containers, cargo, and vehicle and truck fleets. It operates through the following geographical segments: United States, Israel, and Other. The company was founded in 1993 and is headquartered in Woodcliff Lake, NJ.
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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