Hub Group (NASDAQ:HUBG) & DSV A/S (OTCMKTS:DSDVF) Critical Analysis

DSV A/S (OTCMKTS:DSDVF) and Hub Group (NASDAQ:HUBG) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares DSV A/S and Hub Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DSV A/S	N/A	N/A	N/A
Hub Group	N/A	N/A	N/A

Valuation & Earnings

This table compares DSV A/S and Hub Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DSV A/S	N/A	N/A	N/A	$8.38	25.24
Hub Group	$3.95 billion	0.62	$103.99 million	$1.73	23.10

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

Analyst Recommendations

This is a breakdown of recent recommendations for DSV A/S and Hub Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DSV A/S	0	0	0	0	0.00
Hub Group	1	9	6	0	2.31

Hub Group has a consensus price target of $43.31, indicating a potential upside of 8.39%. Given Hub Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hub Group is more favorable than DSV A/S.

Insider & Institutional Ownership

31.5% of DSV A/S shares are owned by institutional investors. Comparatively, 46.8% of Hub Group shares are owned by institutional investors. 3.5% of Hub Group shares are owned 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.

Dividends

DSV A/S pays an annual dividend of $1.50 per share and has a dividend yield of 0.7%. Hub Group pays an annual dividend of $0.50 per share and has a dividend yield of 1.3%. DSV A/S pays out 17.9% of its earnings in the form of a dividend. Hub Group pays out 28.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Hub Group beats DSV A/S on 7 of the 10 factors compared between the two stocks.

About DSV A/S

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific. It operates through three segments: Air & Sea, Road, and Solutions. The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers. It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops. In addition, the company provides logistics solutions for automotive, technology, healthcare, energy, industrial, retail/ fashion, and chemical sectors; and inventory management solutions. Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services. The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021. DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.

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.