WallStSmart

Hub Group Inc (HUBG)vsZTO Express (Cayman) Inc (ZTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ZTO Express (Cayman) Inc generates 1217% more annual revenue ($49.10B vs $3.73B). ZTO leads profitability with a 18.5% profit margin vs 2.8%. ZTO appears more attractively valued with a PEG of 1.25. ZTO earns a higher WallStSmart Score of 76/100 (B+).

HUBG

Buy

55

out of 100

Grade: C

Growth: 4.0Profit: 4.5Value: 10.0Quality: 5.0

ZTO

Strong Buy

76

out of 100

Grade: B+

Growth: 6.7Profit: 7.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HUBGUndervalued (+38.6%)

Margin of Safety

+38.6%

Fair Value

$69.30

Current Price

$36.35

$32.95 discount

UndervaluedFair: $69.30Overvalued
ZTOUndervalued (+67.2%)

Margin of Safety

+67.2%

Fair Value

$75.82

Current Price

$24.32

$51.50 discount

UndervaluedFair: $75.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HUBG2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
20.5%8/10

Earnings expanding 20.5% YoY

ZTO5 strengths · Avg: 8.2/10
Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.0%8/10

Strong operational efficiency at 22.0%

Free Cash FlowQuality
$7.74B8/10

Generating 7.7B in free cash flow

Areas to Watch

HUBG4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

ZTO0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : HUBG

The strongest argument for HUBG centers on Price/Book, EPS Growth.

Bull Case : ZTO

The strongest argument for ZTO centers on Debt/Equity, P/E Ratio, Price/Book. Profitability is solid with margins at 18.5% and operating margin at 22.0%. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : HUBG

The primary concerns for HUBG are PEG Ratio, Return on Equity, Profit Margin. Thin 2.8% margins leave little buffer for downturns.

Bear Case : ZTO

No major red flags identified for ZTO, but monitor valuation.

Key Dynamics to Monitor

HUBG profiles as a value stock while ZTO is a mature play — different risk/reward profiles.

HUBG carries more volatility with a beta of 1.10 — expect wider price swings.

ZTO is growing revenue faster at 12.3% — sustainability is the question.

ZTO generates stronger free cash flow (7.7B), providing more financial flexibility.

Bottom Line

ZTO scores higher overall (76/100 vs 55/100), backed by strong 18.5% margins and 12.3% revenue growth. HUBG offers better value entry with a 38.6% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Hub Group Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

Hub Group, Inc., a light asset freight management company, provides intermodal services, truck brokerage, trucking, managed transportation, cargo consolidation, warehousing, last mile delivery, international transportation, and other freight services. logistics in North America. The company is headquartered in Oak Brook, Illinois.

ZTO Express (Cayman) Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · China

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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