Head to Head Review: Hub Group (NASDAQ:HUBG) & Sinotrans (OTCMKTS:SNOTF)

Sinotrans (OTCMKTS:SNOTF) and Hub Group (NASDAQ:HUBG) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings for Sinotrans and Hub Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sinotrans	0	0	0	0	0.00
Hub Group	1	9	6	0	2.31

Hub Group has a consensus target price of $43.31, suggesting a potential upside of 8.13%. Given Hub Group’s stronger consensus rating and higher possible upside, analysts plainly believe Hub Group is more favorable than Sinotrans.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sinotrans	N/A	N/A	N/A
Hub Group	N/A	N/A	N/A

Institutional and Insider Ownership

17.8% of Sinotrans 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 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sinotrans	N/A	N/A	N/A	$0.24	2.65
Hub Group	$3.95 billion	0.62	$103.99 million	$1.73	23.15

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

Dividends

Sinotrans pays an annual dividend of $0.05 per share and has a dividend yield of 7.8%. Hub Group pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. Sinotrans pays out 20.8% 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. Sinotrans is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Hub Group beats Sinotrans on 8 of the 10 factors compared between the two stocks.

About Sinotrans

Sinotrans Limited provides integrated logistics services primarily in the People’s Republic of China. The company operates through three segments: Agency and Related Business, Professional Logistics, and E-commerce. It offers sea freight forwarding, such as space booking, arranging transportation, container delivery and loading, storage, port concentration and dispatch, customs declaration and inspection, distribution, and delivery; air freight forwarding, including pick-up and dispatch, warehousing, packaging, booking and handling, trunk air line freight forwarding, and trucking transit services; rail freight forwarding services; shipping agency services comprising port arrival and departure, documentation, ship supplies, and other ship related services at ports; and storage and yard services, such as storage, container consolidating and devanning, cargo loading and unloading, dispatching and distribution, etc. The company also engages in the e-commerce business consisting of cross-border e-commerce logistics, logistics e-commerce platform, and logistics equipment sharing platform. In addition, it provides integrated logistics solutions, including contract, project, chemical, cold chain, and other logistics services. The company was founded in 1950 and is based in Beijing, the People’s Republic of 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.