Analyzing J.B. Hunt Transport Services (NASDAQ:JBHT) & DSV A/S (OTCMKTS:DSDVF)

DSV A/S (OTCMKTS:DSDVF) and J.B. Hunt Transport Services (NASDAQ:JBHT) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for DSV A/S and J.B. Hunt Transport Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DSV A/S	1	2	0	0	1.67
J.B. Hunt Transport Services	1	6	9	0	2.50

J.B. Hunt Transport Services has a consensus price target of $195.30, indicating a potential upside of 1.86%. Given J.B. Hunt Transport Services’ stronger consensus rating and higher probable upside, analysts clearly believe J.B. Hunt Transport Services is more favorable than DSV A/S.

Profitability

This table compares DSV A/S and J.B. Hunt Transport Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DSV A/S	N/A	N/A	N/A
J.B. Hunt Transport Services	6.19%	23.06%	10.98%

Insider & Institutional Ownership

31.5% of DSV A/S shares are held by institutional investors. Comparatively, 73.1% of J.B. Hunt Transport Services shares are held by institutional investors. 3.1% of J.B. Hunt Transport Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

DSV A/S pays an annual dividend of $1.50 per share and has a dividend yield of 0.8%. J.B. Hunt Transport Services pays an annual dividend of $1.68 per share and has a dividend yield of 0.9%. DSV A/S pays out 17.9% of its earnings in the form of a dividend. J.B. Hunt Transport Services pays out 20.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. J.B. Hunt Transport Services has raised its dividend for 20 consecutive years. J.B. Hunt Transport Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares DSV A/S and J.B. Hunt Transport Services’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DSV A/S	N/A	N/A	N/A	$8.38	22.94
J.B. Hunt Transport Services	$13.85 billion	1.43	$969.35 million	$8.19	23.41

J.B. Hunt Transport Services has higher revenue and earnings than DSV A/S. DSV A/S is trading at a lower price-to-earnings ratio than J.B. Hunt Transport Services, indicating that it is currently the more affordable of the two stocks.

Summary

J.B. Hunt Transport Services beats DSV A/S on 12 of the 14 factors compared between the two stocks.

About DSV A/S

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific. It operates through three segments: Air & Sea, Road, and Solutions. The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers. It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops. In addition, the company provides logistics solutions for automotive, consumer products, healthcare, high-tech, and industrial sectors; and inventory management solutions. Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services. The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021. DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.

About J.B. Hunt Transport Services

J.B. Hunt Transport Services, Inc. provides surface transportation, delivery, and logistic services in North America. It operates through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT). The JBI segment offers intermodal freight solutions. It operates 115,150 pieces of company-owned trailing equipment; owns and maintains its chassis fleet of 95,553 units; and manages a fleet of 6,081 company-owned tractors, 615 independent contractor trucks, and 7,972 company drivers. The DCS segment designs, develops, and executes supply chain solutions that support various transportation networks. As of December 31, 2022, it operated 12,328 company-owned trucks, 570 customer-owned trucks, and 1 contractor trucks. The company also operates 23,354 owned pieces of trailing equipment and 4,968 customer-owned trailers. The ICS segment provides freight brokerage and transportation logistics solutions; flatbed, refrigerated, expedited, and less-than-truckload, as well as dry-van and intermodal solutions; an online multimodal marketplace; and logistics management for customers to outsource the transportation functions. The FMS segment offers delivery services through 1,506 company-owned trucks, 303 customer-owned trucks, and 20 independent contractor trucks; and 1,297 owned pieces of trailing equipment and 316 customer-owned trailers. The JBT segment provides dry-van freight services by utilizing tractors and trailers operating over roads and highways through 620 company-owned tractors and 14,718 company-owned trailers. It also transports or arranges for the transportation of freight, such as general merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, agricultural products, electronics, and chemicals. The company was incorporated in 1961 and is headquartered in Lowell, Arkansas.