Roadrunner Transportation Systems (OTCMKTS:RRTS) and Hub Group (NASDAQ:HUBG) Head-To-Head Comparison

Roadrunner Transportation Systems (OTCMKTS:RRTS) and Hub Group (NASDAQ:HUBG) are both small-cap transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Roadrunner Transportation Systems N/A N/A N/A
Hub Group 2.30% 8.05% 4.35%

Insider and Institutional Ownership

0.0% of Roadrunner Transportation Systems shares are owned by institutional investors. Comparatively, 90.8% of Hub Group shares are owned by institutional investors. 0.7% of Roadrunner Transportation Systems shares are owned by company insiders. Comparatively, 5.1% 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 company will outperform the market over the long term.

Volatility & Risk

Roadrunner Transportation Systems has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, Hub Group has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Roadrunner Transportation Systems and Hub Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Roadrunner Transportation Systems 0 0 0 0 N/A
Hub Group 1 3 3 0 2.29

Hub Group has a consensus target price of $53.29, suggesting a potential downside of 2.94%. Given Hub Group’s higher probable upside, analysts clearly believe Hub Group is more favorable than Roadrunner Transportation Systems.

Earnings and Valuation

This table compares Roadrunner Transportation Systems and Hub Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Roadrunner Transportation Systems $1.85 billion 0.04 -$340.94 million N/A N/A
Hub Group $3.67 billion 0.51 $107.17 million $3.39 16.19

Hub Group has higher revenue and earnings than Roadrunner Transportation Systems.

Summary

Hub Group beats Roadrunner Transportation Systems on 11 of the 12 factors compared between the two stocks.

About Roadrunner Transportation Systems

Roadrunner Transportation Systems, Inc. provides asset-right transportation and asset-light logistics services. It operates through four segments: Ascent Transportation Management (Ascent TM), Ascent On-Demand (Ascent OD), Less-than-Truckload (LTL), and Truckload (TL). The company offers domestic freight management solutions, including asset-backed truckload brokerage, specialized/heavy haul, LTL shipment execution, LTL carrier rate negotiations, access to its transportation management system, and freight audit/payment. It also provides air and ground expedite services for the transportation of automotive and industrial parts, paper products, and steel, as well as frozen and refrigerated foods, including dairy, poultry and meat, and consumers products, such as foods and beverages. In addition, the company arranges the pickup and delivery of TL freight through its 30 TL service centers in the United States; offers dry van truckload, temperature-controlled truckload, and logistics and warehouse services; and provides pickup, consolidation, linehaul, deconsolidation, and delivery of LTL shipments in the United States and Canada through 27 LTL service centers and approximately 140 third-party delivery agents. Further, the company provides international air and ocean freight forwarding, customs brokerage, regulatory compliance, project and order management, and retail consolidation services. It operates through a network of independent brokerage agents, direct sales force, company brokers, and commissioned sales representatives. The company offers its services under the Roadrunner and Ascent Global Logistics brands. Roadrunner Transportation Systems, Inc. was incorporated in 2005 and is headquartered in Downers Grove, Illinois.

About Hub Group

Hub Group, Inc., an asset-light freight transportation management company, provides intermodal, trucking, truck brokerage, and other logistics services in North America. Its intermodal services include arranging for the movement of its customers' freight in containers and trailers over long distances. The company contracts with railroads to provide transportation for the long-haul portion of the shipment between origin or destination and rail terminals for pickup and delivery; and negotiates drayage rates for the transportation between origin and destination points. It also offers truck brokerage services; and warehouse and transportation logistics services, including retailer-driven collaborative consolidation programs, as well as a range of transportation management services and technology solutions, such as shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, and Web-based shipment visibility under the Unyson Logistics and CaseStack names. In addition, the company provides multi-modal transportation services, such as small parcel, heavyweight, expedited, less-than-truckload, truckload, intermodal, railcar, and international shipping. As of December 31, 2019, it owned approximately 38,000 53-foot containers for use on the Union Pacific and the Norfolk Southern railroads. Hub Group, Inc. was founded in 1971 and is headquartered in Oak Brook, Illinois.

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