Head to Head Review: Addentax Group (NASDAQ:ATXG) versus Expeditors International of Washington (NASDAQ:EXPD)

Expeditors International of Washington (NASDAQ:EXPD) and Addentax Group (NASDAQ:ATXG) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Expeditors International of Washington and Addentax Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expeditors International of Washington	3	6	2	2	2.23
Addentax Group	1	0	0	0	1.00

Expeditors International of Washington presently has a consensus target price of $168.78, suggesting a potential downside of 12.98%. Given Expeditors International of Washington’s stronger consensus rating and higher probable upside, research analysts plainly believe Expeditors International of Washington is more favorable than Addentax Group.

Profitability

This table compares Expeditors International of Washington and Addentax Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expeditors International of Washington	7.64%	36.16%	16.88%
Addentax Group	-21.05%	-9.16%	-7.22%

Valuation & Earnings

This table compares Expeditors International of Washington and Addentax Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expeditors International of Washington	$12.04 billion	2.09	$752.88 million	$6.87	28.23
Addentax Group	$7.98 million	0.56	-$4.47 million	($3.92)	-0.97

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

Insider & Institutional Ownership

94.0% of Expeditors International of Washington shares are owned by institutional investors. Comparatively, 10.1% of Addentax Group shares are owned by institutional investors. 0.5% of Expeditors International of Washington shares are owned by company insiders. Comparatively, 2.7% of Addentax Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Expeditors International of Washington has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Addentax Group has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Summary

Expeditors International of Washington beats Addentax Group on 14 of the 15 factors compared between the two stocks.

About Expeditors International of Washington

Expeditors International of Washington, Inc., together with its subsidiaries, provides logistics services worldwide. The company offers airfreight services, such as air freight consolidation and forwarding; ocean freight and ocean services, including ocean freight consolidation, direct ocean forwarding, and order management; customs brokerage, import, intra-continental ground transportation and delivery, and warehousing and distribution services; and customs clearance, purchase order management, vendor consolidation, time-definite transportation services, temperature-controlled transit, cargo insurance, specialized cargo monitoring and tracking, and other supply chain solutions. It also provides optimization, trade compliance consulting, cargo security, and solutions. In addition, it acts as a freight consolidator or as an agent for the airline that carries the shipment. Further, the company provides ancillary services that include preparation of shipping and customs documentation, packing, crating, insurance services, and the preparation of documentation to comply with local import and export laws. Its customers include retailing and wholesaling, electronics, technology, and industrial and manufacturing companies. The company was incorporated in 1979 and is headquartered in Seattle, Washington.

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.