Contrasting Addentax Group (NASDAQ:ATXG) and Hub Group (NASDAQ:HUBG)

Hub Group (NASDAQ:HUBG) and Addentax Group (NASDAQ:ATXG) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hub Group and Addentax Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hub Group	2	8	6	0	2.25
Addentax Group	1	0	0	0	1.00

Hub Group currently has a consensus price target of $40.67, indicating a potential upside of 58.24%. Given Hub Group’s stronger consensus rating and higher probable upside, analysts plainly believe Hub Group is more favorable than Addentax Group.

Risk & Volatility

Hub Group has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Addentax Group has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Institutional & Insider Ownership

46.8% of Hub Group shares are held by institutional investors. Comparatively, 10.1% of Addentax Group shares are held by institutional investors. 3.5% of Hub Group shares are held by company insiders. Comparatively, 2.7% of Addentax Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hub Group	$3.95 billion	0.40	$103.99 million	$1.73	14.86
Addentax Group	$5.37 million	0.66	-$4.47 million	($3.92)	-0.77

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hub Group	N/A	N/A	N/A
Addentax Group	-21.05%	-9.16%	-7.22%

Summary

Hub Group beats Addentax Group on 13 of the 14 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 Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.