Hub Group (NASDAQ:HUBG) and Proficient Auto Logistics (NASDAQ:PAL) Head-To-Head Review

Hub Group (NASDAQ:HUBG) and Proficient Auto Logistics (NASDAQ:PAL) are both transportation companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

46.8% of Hub Group shares are held by institutional investors. 3.5% of Hub Group shares are held by insiders. Comparatively, 13.9% of Proficient Auto Logistics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Hub Group and Proficient Auto Logistics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hub Group	0	7	9	1	2.65
Proficient Auto Logistics	1	1	2	0	2.25

Hub Group presently has a consensus price target of $46.20, suggesting a potential downside of 8.38%. Proficient Auto Logistics has a consensus price target of $12.00, suggesting a potential upside of 13.91%. Given Proficient Auto Logistics’ higher possible upside, analysts plainly believe Proficient Auto Logistics is more favorable than Hub Group.

Risk and Volatility

Hub Group has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Proficient Auto Logistics has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500.

Profitability

This table compares Hub Group and Proficient Auto Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hub Group	2.82%	6.58%	3.97%
Proficient Auto Logistics	-3.12%	-1.44%	-0.95%

Valuation & Earnings

This table compares Hub Group and Proficient Auto Logistics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hub Group	$3.95 billion	0.78	$103.99 million	$1.73	29.15
Proficient Auto Logistics	$240.85 million	1.22	-$8.48 million	($0.02)	-526.75

Hub Group has higher revenue and earnings than Proficient Auto Logistics. Proficient Auto Logistics is trading at a lower price-to-earnings ratio than Hub Group, indicating that it is currently the more affordable of the two stocks.

Summary

Hub Group beats Proficient Auto Logistics on 11 of the 15 factors compared between the two stocks.

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.

About Proficient Auto Logistics

Proficient Auto Logistics, Inc. focuses on providing auto transportation and logistics services in North America. It primarily focuses on transporting and delivering finished vehicles from automotive production facilities, ports of entry, and rail yards to a network of automotive dealerships. The company operates approximately 1,130 auto transport vehicles and trailers, including 615 company-owned transport vehicles and trailers. It serves auto companies, electric vehicle producers, auto dealers, auto auctions, rental car companies, and auto leasing companies. The company was formerly known as AH Acquisition Corp. and changed its name to Proficient Auto Logistics, Inc. in October 2023. The company was incorporated in 2023 and is based in Jacksonville, Florida.