LSTR vs HUBG

For growth investors, Landstar System, Inc.

(LSTR) is the stronger pick with -1. 9% revenue growth year-over-year, versus -6. 1% for Hub Group, Inc. (HUBG). Hub Group, Inc. (HUBG) offers the better valuation at 25. 4x trailing P/E (26. 4x forward), making it the more compelling value choice. Analysts rate Landstar System, Inc. (LSTR) a "Hold" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Hub Group, Inc.

(HUBG) is the cheapest at 25. 4x versus Landstar System, Inc. at 54. 8x. On forward P/E, Hub Group, Inc. is actually cheaper at 26. 4x.

Over the past 5 years, Hub Group, Inc.

(HUBG) delivered a total return of +27. 2%, compared to +12. 4% for Landstar System, Inc. (LSTR). Over 10 years, the gap is even starker: LSTR returned +209. 7% versus HUBG's +126. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Landstar System, Inc.

(LSTR) is the lower-risk stock at 1. 06β versus Hub Group, Inc. 's 1. 21β — meaning HUBG is approximately 14% more volatile than LSTR relative to the S&P 500. On balance sheet safety, Landstar System, Inc. (LSTR) carries a lower debt/equity ratio of 17% versus 30% for Hub Group, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Landstar System, Inc.

(LSTR) is pulling ahead at -1. 9% versus -6. 1% for Hub Group, Inc. (HUBG). On earnings-per-share growth, the picture is similar: Hub Group, Inc. grew EPS -35. 1% year-over-year, compared to -39. 9% for Landstar System, Inc.. Over a 3-year CAGR, HUBG leads at -2. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Hub Group, Inc.

(HUBG) is the more profitable company, earning 2. 6% net margin versus 2. 4% for Landstar System, Inc. — meaning it keeps 2. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LSTR leads at 3. 6% versus 3. 6% for HUBG. At the gross margin level — before operating expenses — HUBG leads at 85. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Hub Group, Inc.

(HUBG) trades at 26. 4x forward P/E versus 32. 1x for Landstar System, Inc. — 5. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HUBG: 2. 5% to $44. 33.

All stocks in this comparison pay dividends.

Landstar System, Inc. (LSTR) offers the highest yield at 2. 0%, versus 1. 1% for Hub Group, Inc. (HUBG).

For long-horizon retirement investors, Landstar System, Inc.

(LSTR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 06), 2. 0% yield, +209. 7% 10Y return). Both have compounded well over 10 years (LSTR: +209. 7%, HUBG: +126. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.