Analyzing Covenant Transportation Group (CVTI) & Celadon Group (CGI)
Covenant Transportation Group (NYSE: CGI) and Celadon Group (NYSE:CGI) are both small-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Covenant Transportation Group pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Celadon Group pays an annual dividend of $0.02 per share and has a dividend yield of 0.6%. Covenant Transportation Group pays out 9.5% of its earnings in the form of a dividend.
This table compares Covenant Transportation Group and Celadon Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Covenant Transportation Group||9.09%||9.77%||4.20%|
Valuation and Earnings
This table compares Covenant Transportation Group and Celadon Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Covenant Transportation Group||$705.01 million||0.80||$55.43 million||$0.84||36.50|
|Celadon Group||$1.07 billion||0.09||$24.84 million||N/A||N/A|
Covenant Transportation Group has higher earnings, but lower revenue than Celadon Group.
Insider and Institutional Ownership
66.8% of Covenant Transportation Group shares are owned by institutional investors. Comparatively, 86.1% of Celadon Group shares are owned by institutional investors. 33.1% of Covenant Transportation Group shares are owned by insiders. Comparatively, 3.8% of Celadon Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Covenant Transportation Group has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Celadon Group has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.
This is a summary of current ratings for Covenant Transportation Group and Celadon Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Covenant Transportation Group||0||1||3||0||2.75|
Covenant Transportation Group currently has a consensus target price of $36.50, indicating a potential upside of 19.05%. Given Covenant Transportation Group’s higher probable upside, equities research analysts clearly believe Covenant Transportation Group is more favorable than Celadon Group.
Covenant Transportation Group beats Celadon Group on 8 of the 13 factors compared between the two stocks.
Covenant Transportation Group Company Profile
Covenant Transportation Group, Inc., together with its subsidiaries, provides truckload transportation and brokerage services primarily in the continental United States. It offers long haul, dedicated, temperature-controlled, and regional solo-driver services; long haul, regional, dedicated, and intermodal temperature-controlled services; and regional solo-driver and dedicated services. The company also provides ancillary services, including freight brokerage services and accounts receivable factoring. It serves transportation companies, such as freight forwarders, less-than-truckload carriers, and third-party logistics providers; and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. As of December 31, 2017, the company operated 2,559 tractors and 7,134 trailers. Covenant Transportation Group, Inc. was founded in 1986 and is headquartered in Chattanooga, Tennessee.
Celadon Group Company Profile
Celadon Group, Inc. (Celadon) is a truckload freight transportation provider. The Company’s segments are asset-based, asset-light, and equipment leasing and services. Its services involve point-to-point shipping for its customers within the United States, between the United States and Mexico, and between the United States and Canada. The Company’s primary asset-based services include the United States domestic dry van and refrigerated; cross-border service between the United States and each of Mexico and Canada; intra-Mexico and intra-Canada service; contract service; regional and specialized short haul service, and rail intermodal service. The Company’s primary asset-light services include freight brokerage, warehousing, less-than truckload consolidation and supply chain logistics services.
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