Critical Review: Celadon Group (OTCMKTS:CGIP) versus CovenantLogisticsGroupInc . (OTCMKTS:CVLG)

Celadon Group (OTCMKTS:CGIP) and CovenantLogisticsGroupInc . (NASDAQ:CVLG) are both small-cap transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Celadon Group and CovenantLogisticsGroupInc ., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celadon Group 0 0 0 0 N/A
CovenantLogisticsGroupInc . 0 0 1 0 3.00

CovenantLogisticsGroupInc . has a consensus price target of $26.00, suggesting a potential upside of 49.00%. Given CovenantLogisticsGroupInc .’s higher possible upside, analysts plainly believe CovenantLogisticsGroupInc . is more favorable than Celadon Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Celadon Group N/A N/A N/A
CovenantLogisticsGroupInc . -3.09% -0.26% -0.10%

Earnings and Valuation

This table compares Celadon Group and CovenantLogisticsGroupInc .’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celadon Group N/A N/A N/A N/A N/A
CovenantLogisticsGroupInc . $894.53 million 0.33 $8.48 million $0.61 28.61

CovenantLogisticsGroupInc . has higher revenue and earnings than Celadon Group.

Risk & Volatility

Celadon Group has a beta of 2.96, meaning that its stock price is 196% more volatile than the S&P 500. Comparatively, CovenantLogisticsGroupInc . has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Celadon Group shares are held by institutional investors. Comparatively, 51.3% of CovenantLogisticsGroupInc . shares are held by institutional investors. 3.8% of Celadon Group shares are held by insiders. Comparatively, 32.5% of CovenantLogisticsGroupInc . shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

CovenantLogisticsGroupInc . beats Celadon Group on 5 of the 9 factors compared between the two stocks.

Celadon Group Company Profile

Celadon Group, Inc., through its subsidiaries, provides transportation services between the United States, Canada, and Mexico. It operates through three segments: Asset-Based, Asset-Light, and Equipment Leasing and Services. The Asset-Based segment offers dry van, refrigerated, and flatbed services; cross-border services between the United States and each of Mexico and Canada; intra-Mexico and intra-Canada services; contract services; regional and specialized short haul services; and rail intermodal services. The Asset-Light segment provides freight brokerage, warehousing, less-than truckload consolidation, and supply chain logistics services. The Equipment Leasing and Services segment offers tractor and trailer sales and leasing services, as well as insurance, maintenance, and other ancillary services primarily to the independent contractors and other trucking fleets. The company transports various types of freight, including tobacco, consumer goods, automotive parts, various home products and fixtures, lawn tractors and assorted equipment, light bulbs, and various parts for engines. Celadon Group, Inc. was founded in 1985 and is headquartered in Indianapolis, Indiana.

CovenantLogisticsGroupInc . Company Profile

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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