Head to Head Contrast: Addentax Group (NASDAQ:ATXG) & Hub Group (NASDAQ:HUBG)

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

Institutional & Insider Ownership

10.1% of Addentax Group shares are owned by institutional investors. Comparatively, 46.8% of Hub Group shares are owned by institutional investors. 2.7% of Addentax Group 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Addentax Group and Hub Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Addentax Group	$5.37 million	0.62	-$4.47 million	($3.92)	-0.72
Hub Group	$3.95 billion	0.43	$103.99 million	$1.73	15.97

Hub Group has higher revenue and earnings than Addentax Group. Addentax Group 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

Addentax Group has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Addentax Group and Hub Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Addentax Group	1	0	0	0	1.00
Hub Group	2	8	6	0	2.25

Hub Group has a consensus target price of $40.67, suggesting a potential upside of 47.20%. Given Hub Group’s stronger consensus rating and higher probable upside, analysts clearly believe Hub Group is more favorable than Addentax Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Addentax Group	-21.05%	-9.16%	-7.22%
Hub Group	N/A	N/A	N/A

Summary

Hub Group beats Addentax Group on 13 of the 14 factors compared between the two stocks.

About Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.

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.