Echo Global Logistics (NASDAQ: ECHO) and Forward Air (NASDAQ:FWRD) are both small-cap transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Insider & Institutional Ownership
98.2% of Echo Global Logistics shares are owned by institutional investors. Comparatively, 97.8% of Forward Air shares are owned by institutional investors. 8.1% of Echo Global Logistics shares are owned by company insiders. Comparatively, 2.0% of Forward Air 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.
Echo Global Logistics has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Forward Air has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
This table compares Echo Global Logistics and Forward Air’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Echo Global Logistics||0.96%||7.50%||3.16%|
Valuation & Earnings
This table compares Echo Global Logistics and Forward Air’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Echo Global Logistics||$1.94 billion||0.40||$12.62 million||$0.66||41.97|
|Forward Air||$1.10 billion||1.52||$87.32 million||$2.36||24.17|
Forward Air has lower revenue, but higher earnings than Echo Global Logistics. Forward Air is trading at a lower price-to-earnings ratio than Echo Global Logistics, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Echo Global Logistics and Forward Air, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Echo Global Logistics||1||4||5||0||2.40|
Echo Global Logistics currently has a consensus target price of $32.33, indicating a potential upside of 16.73%. Forward Air has a consensus target price of $63.00, indicating a potential upside of 10.47%. Given Echo Global Logistics’ higher probable upside, analysts clearly believe Echo Global Logistics is more favorable than Forward Air.
Forward Air pays an annual dividend of $0.60 per share and has a dividend yield of 1.1%. Echo Global Logistics does not pay a dividend. Forward Air pays out 25.4% of its earnings in the form of a dividend.
Echo Global Logistics Company Profile
Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management solutions in the United States. It uses a proprietary technology platform to compile and analyze data from its multi-modal network of transportation providers for the transportation and logistics needs. The company offers services in various transportation modes, such as truckload, less-than truckload, small parcel, inter-modal, domestic air, and expedited and international. Its principal transportation management and logistics services include rate negotiation; procurement of transportation; shipment execution and tracking; carrier management, selection, reporting, and compliance; executive dashboard presentations and detailed shipment reports; freight bill payment and audit; claims processing and service refund management; design and management of inbound client freight programs; individually configured Web portals and self-service data warehouses; enterprise resource planning integration with transactional shipment data; and integration of shipping applications into client e-commerce sites, as well as back-end reports customized to the internal reporting needs of the business. The company serves clients operating in various industries, such as manufacturing, construction, food and beverage, consumer products, and retail. Echo Global Logistics, Inc. was founded in 2005 and is headquartered in Chicago, Illinois.
Forward Air Company Profile
Forward Air Corporation, together with its subsidiaries, operates as an asset-light freight and logistics company in the United State and Canada. The company operates through four segments: Expedited Less-than-truckload (LTL), Truckload Premium Services (TLS), Intermodal, and Pool Distribution (Pool). The Expedited LTL segment provides expedited regional, inter-regional, and national LTL services, as well as local pick-up and delivery services. It also offers shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling services. This segment provides its transportation services through a network of terminals located at or near airports. The TLS segment offers expedited truckload brokerage, dedicated fleet, and high security and temperature-controlled logistics services. The Intermodal segment provides intermodal container drayage services; and contract, and container freight station warehouse and handling services. The Pool segment offers high-frequency handling and distribution of time-sensitive products to various destinations. Forward Air Corporation was founded in 1981 and is headquartered in Greeneville, Tennessee.
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