Echo Global Logistics (NASDAQ: ECHO) and Expeditors International of Washington (NASDAQ:EXPD) are both transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
This table compares Echo Global Logistics and Expeditors International of Washington’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Echo Global Logistics||0.65%||5.22%||2.26%|
|Expeditors International of Washington||7.07%||22.79%||14.87%|
99.0% of Echo Global Logistics shares are held by institutional investors. Comparatively, 92.4% of Expeditors International of Washington shares are held by institutional investors. 8.1% of Echo Global Logistics shares are held by company insiders. Comparatively, 1.0% of Expeditors International of Washington shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Echo Global Logistics has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Expeditors International of Washington has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Echo Global Logistics and Expeditors International of Washington, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Echo Global Logistics||1||4||5||0||2.40|
|Expeditors International of Washington||2||5||1||0||1.88|
Echo Global Logistics currently has a consensus target price of $30.22, suggesting a potential downside of 0.09%. Expeditors International of Washington has a consensus target price of $62.14, suggesting a potential downside of 3.86%. Given Echo Global Logistics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Echo Global Logistics is more favorable than Expeditors International of Washington.
Valuation and Earnings
This table compares Echo Global Logistics and Expeditors International of Washington’s gross 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||0.44||$12.62 million||$0.66||45.83|
|Expeditors International of Washington||$6.92 billion||1.64||$489.34 million||$2.48||26.06|
Expeditors International of Washington has higher revenue and earnings than Echo Global Logistics. Expeditors International of Washington 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.
Expeditors International of Washington pays an annual dividend of $0.84 per share and has a dividend yield of 1.3%. Echo Global Logistics does not pay a dividend. Expeditors International of Washington pays out 33.9% of its earnings in the form of a dividend. Expeditors International of Washington has raised its dividend for 23 consecutive years.
Expeditors International of Washington beats Echo Global Logistics on 9 of the 17 factors compared between the two stocks.
About Echo Global Logistics
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.
About Expeditors International of Washington
Expeditors International of Washington, Inc. provides logistics services in the Americas, North Asia, South Asia, Europe, the Middle East, Africa, and India. The company offers airfreight services, such as air freight consolidation and forwarding; ocean freight and ocean services, such as ocean freight consolidation, direct ocean forwarding, and order management; customs brokerage, intra-continental ground transportation and delivery, and warehousing and distribution services; and customs clearance, purchase order management, vendor consolidation, time-definite transportation services, cargo insurance, cargo monitoring and tracking, and other logistics solutions. It acts as a freight consolidator or as an agent for the airline, which carries the shipment. The company also provides ancillary services that include preparation of shipping and customs documentation, packing, crating, insurance services, negotiation of letters of credit, and the preparation of documentation to comply with local export laws. Its customers include retailing and wholesaling, electronics, and industrial and manufacturing companies. Expeditors International of Washington, Inc. was founded in 1979 and is headquartered in Seattle, Washington.
Receive News & Ratings for Echo Global Logistics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Echo Global Logistics and related companies with MarketBeat.com's FREE daily email newsletter.