Macquarie Infrastructure (NYSE: MIC) and Echo Global Logistics (NASDAQ:ECHO) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Valuation and Earnings

This table compares Macquarie Infrastructure and Echo Global Logistics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Macquarie Infrastructure $1.75 billion 3.41 $604.97 million $2.16 33.38
Echo Global Logistics $1.75 billion 0.31 $31.70 million ($0.13) -148.45

Echo Global Logistics is trading at a lower price-to-earnings ratio than Macquarie Infrastructure, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Macquarie Infrastructure and Echo Global Logistics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macquarie Infrastructure 0 1 3 0 2.75
Echo Global Logistics 0 3 6 0 2.67

Macquarie Infrastructure currently has a consensus price target of $89.33, indicating a potential upside of 23.88%. Echo Global Logistics has a consensus price target of $20.88, indicating a potential upside of 8.16%. Given Macquarie Infrastructure’s stronger consensus rating and higher probable upside, analysts plainly believe Macquarie Infrastructure is more favorable than Echo Global Logistics.

Dividends

Macquarie Infrastructure pays an annual dividend of $5.52 per share and has a dividend yield of 7.7%. Echo Global Logistics does not pay a dividend. Macquarie Infrastructure pays out 255.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macquarie Infrastructure has increased its dividend for 5 consecutive years.

Profitability

This table compares Macquarie Infrastructure and Echo Global Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macquarie Infrastructure 10.12% 5.71% 2.35%
Echo Global Logistics -0.21% 3.22% 1.47%

Insider and Institutional Ownership

80.5% of Macquarie Infrastructure shares are held by institutional investors. Comparatively, 87.5% of Echo Global Logistics shares are held by institutional investors. 5.9% of Macquarie Infrastructure shares are held by insiders. Comparatively, 8.1% of Echo Global Logistics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Macquarie Infrastructure has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Echo Global Logistics has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Summary

Macquarie Infrastructure beats Echo Global Logistics on 10 of the 16 factors compared between the two stocks.

Macquarie Infrastructure Company Profile

Macquarie Infrastructure Corporation owns and operates a group of businesses that provide services, such as bulk liquid terminalling and handling services. The Company operates through four segments: International-Matex Tank Terminals (IMTT), Atlantic Aviation, Contracted Power (CP) and MIC Hawaii. Its group of businesses also provides services, such as aircraft fueling, CP generation and utility gas services. Its group of businesses provides services to businesses, government agencies and individuals in the United States. IMTT segment provides bulk liquid terminal services in the United States. As of December 31, 2016, Atlantic Aviation operated Fixed based operations (FBOs) at 69 airports in the United States. The businesses in its CP segment sell electricity to off-takers, pursuant to multi-year contracts. MIC Hawaii segment consists of Hawaii Gas and several smaller businesses. Hawaii Gas consists of a gas utility and a liquefied petroleum gas (LPG) distribution business.

Echo Global Logistics Company Profile

Echo Global Logistics, Inc. is a provider of technology-enabled transportation and supply chain management solutions. The Company utilizes a technology platform to compile and analyze data from its multi-modal network of transportation providers to facilitate its transportation and logistics services. The Company focuses primarily on arranging transportation by truckload (TL) and less than truckload (LTL) carriers. It also offers intermodal (which involves moving a shipment by rail and truck), small parcel, domestic air, expedited and international transportation services. The Company’s core logistics services include rate negotiation, shipment execution and tracking, carrier selection and management, routing compliance freight bill payment and audit, payment and performance management and reporting functions.

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