Universal Logistics (NASDAQ: ULH) and Celadon Group (NYSE:CGI) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

27.8% of Universal Logistics shares are owned by institutional investors. Comparatively, 85.2% of Celadon Group shares are owned by institutional investors. 71.0% of Universal Logistics shares are owned by company insiders. Comparatively, 3.8% of Celadon Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Universal Logistics and Celadon Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal Logistics 0.55% 11.59% 2.94%
Celadon Group N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Universal Logistics and Celadon Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Logistics 0 2 1 0 2.33
Celadon Group 0 1 4 0 2.80

Universal Logistics currently has a consensus target price of $23.00, suggesting a potential downside of 3.77%. Celadon Group has a consensus target price of $12.00, suggesting a potential upside of 90.48%. Given Celadon Group’s stronger consensus rating and higher possible upside, analysts clearly believe Celadon Group is more favorable than Universal Logistics.

Volatility & Risk

Universal Logistics has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Celadon Group has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Valuation & Earnings

This table compares Universal Logistics and Celadon Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Logistics $1.07 billion 0.63 $24.24 million $0.23 103.91
Celadon Group $1.07 billion 0.17 $24.84 million $0.20 31.50

Celadon Group has lower revenue, but higher earnings than Universal Logistics. Celadon Group is trading at a lower price-to-earnings ratio than Universal Logistics, indicating that it is currently the more affordable of the two stocks.

Dividends

Universal Logistics pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Celadon Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Universal Logistics pays out 121.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Celadon Group pays out 20.0% of its earnings in the form of a dividend.

Summary

Universal Logistics beats Celadon Group on 9 of the 16 factors compared between the two stocks.

Universal Logistics Company Profile

Universal Logistics Holdings, Inc., formerly Universal Truckload Services, Inc., is an asset-light provider of customized transportation and logistics solutions across the United States, Mexico, Canada and Colombia. The Company operates through two segments: the transportation segment and the logistics segment. The Company’s operations aggregated in the transportation segment are associated with individual freight shipments coordinated by its agents, company-managed terminals and specialized services operations. The Company’s operations aggregated in the logistics segment deliver value-added services and transportation services to specific customers. Its other operating segments consist of the Company’s subsidiaries that provide support services to other subsidiaries and to owner-operators, including shop maintenance and equipment leasing. The Company groups its services into three service categories: transportation, value-added and intermodal support.

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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