ArcBest (NASDAQ:ARCB) vs. CovenantLogisticsGroupInc . (NASDAQ:CVLG) Financial Analysis
ArcBest (NASDAQ:ARCB) and CovenantLogisticsGroupInc . (NASDAQ:CVLG) are both small-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This table compares ArcBest and CovenantLogisticsGroupInc .’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for ArcBest and CovenantLogisticsGroupInc ., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ArcBest presently has a consensus target price of $32.44, indicating a potential upside of 7.65%. CovenantLogisticsGroupInc . has a consensus target price of $26.00, indicating a potential upside of 53.57%. Given CovenantLogisticsGroupInc .’s stronger consensus rating and higher possible upside, analysts plainly believe CovenantLogisticsGroupInc . is more favorable than ArcBest.
Risk & Volatility
ArcBest has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, CovenantLogisticsGroupInc . has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.
Institutional & Insider Ownership
89.4% of ArcBest shares are owned by institutional investors. Comparatively, 51.3% of CovenantLogisticsGroupInc . shares are owned by institutional investors. 1.9% of ArcBest shares are owned by insiders. Comparatively, 32.5% of CovenantLogisticsGroupInc . shares are owned by 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.
Earnings and Valuation
This table compares ArcBest and CovenantLogisticsGroupInc .’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ArcBest||$2.99 billion||0.26||$39.99 million||$2.88||10.47|
|CovenantLogisticsGroupInc .||$894.53 million||0.32||$8.48 million||$0.61||27.75|
ArcBest has higher revenue and earnings than CovenantLogisticsGroupInc .. ArcBest is trading at a lower price-to-earnings ratio than CovenantLogisticsGroupInc ., indicating that it is currently the more affordable of the two stocks.
ArcBest beats CovenantLogisticsGroupInc . on 9 of the 14 factors compared between the two stocks.
ArcBest Corporation provides freight transportation services and integrated logistics solutions worldwide. It operates through three segments: Asset-Based, ArcBest, and FleetNet. The Asset-Based segment transports general commodities, such as food, textiles, apparel, furniture, appliances, chemicals, nonbulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery, and miscellaneous manufactured products through less-than-truckload services. It also offers motor carrier freight transportation services to customers in Mexico through arrangements with trucking companies. The ArcBest segment provides expedite freight transportation services to commercial and government customers; premium logistics services, such as deployment of specialized equipment to meet linehaul requirements; and international freight transportation with air, ocean, and ground services. It also offers third-party transportation brokerage services by sourcing various capacity solutions, including dry van over the road and intermodal, temperature-controlled and refrigerated, flatbed, intermodal or container shipping, and specialized equipment; full-container and less-than-container load ocean transportation services; warehousing and distribution services; managed transportation services; and moving services to ‘do-it-yourself' consumer and corporate account employee relocations, as well as provides final mile, time critical, product launch, warehousing, retail logistics, supply chain optimization, and trade show shipping services. The FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles through third-party service providers. The company was formerly known as Arkansas Best Corporation and changed its name to ArcBest Corporation in May 2014. ArcBest Corporation was founded in 1923 and is headquartered in Fort Smith, Arkansas.
About CovenantLogisticsGroupInc .
Covenant Logistics Group, Inc. is a holding company, which engages in the provision of freight and logistics services. It operates through the following segments: Highway Services and Dedicated Contract Services. The Highway Services Segment includes two separate service offerings: Expedited Services (“”Expedited””) and Over-the-Road Services (“”OTR””), both of which transport one-way freight over nonroutine routes. The Dedicated Contract Services Segment provides similar transportation services, but does so pursuant to agreements whereby equipment available to a specific customer for shipments over particular routes at specified times. The company was founded by David Ray Parker in 1985 and is headquartered in Chattanooga, TN.
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