Cargojet (CGJTF) versus Its Competitors Critical Contrast

Cargojet (OTCMKTS:CGJTF) is one of 60 publicly-traded companies in the “Air Freight & Logistics” industry, but how does it weigh in compared to its peers? We will compare Cargojet to similar businesses based on the strength of its earnings, risk, analyst recommendations, valuation, institutional ownership, profitability and dividends.

Valuation & Earnings

This table compares Cargojet and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cargojet	$710.45 million	$57.40 million	29.09
Cargojet Competitors	$11.99 billion	$591.75 million	7.90

Cargojet’s peers have higher revenue and earnings than Cargojet. Cargojet is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Cargojet pays an annual dividend of $1.11 per share and has a dividend yield of 1.9%. Cargojet pays out 56.3% of its earnings in the form of a dividend. As a group, “Air Freight & Logistics” companies pay a dividend yield of 2.6% and pay out 41.1% of their earnings in the form of a dividend. Cargojet lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cargojet and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cargojet	0	1	2	0	2.67
Cargojet Competitors	620	1982	2539	105	2.41

As a group, “Air Freight & Logistics” companies have a potential upside of 17.45%. Given Cargojet’s peers higher probable upside, analysts clearly believe Cargojet has less favorable growth aspects than its peers.

Profitability

This table compares Cargojet and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cargojet	4.48%	6.73%	2.38%
Cargojet Competitors	-1,605.68%	-24.13%	-12.59%

Institutional and Insider Ownership

42.6% of shares of all “Air Freight & Logistics” companies are held by institutional investors. 18.3% of shares of all “Air Freight & Logistics” companies are held by 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.

Summary

Cargojet peers beat Cargojet on 8 of the 14 factors compared.

Cargojet Company Profile

Cargojet Inc. provides time sensitive overnight air cargo services and carriers in Canada. It operates domestic air cargo network services between 16 Canadian cities; and provides dedicated aircraft to customers on an aircraft, crew, maintenance, and insurance basis operating between points in Canada, North and South America, and Europe. The company operates scheduled international routes for various cargo customers between the United States and Bermuda; and between Canada, the United Kingdom, and Germany. In addition, it offers aircraft to customers on an ad hoc charter basis operating between points in Canada, the United States, and other international destinations; and specialty charter services for livestock shipments, military equipment movements, emergency relief supplies, and virtually large shipments across North America, South America, the Caribbean, and Europe. Further, the company is involved in the aircraft operation and maintenance, flight planning and dispatch, crew planning and training, ground handling, and commercial airline cargo management businesses. The company operates a fleet of 41 aircraft. Cargojet Inc. was founded in 2001 and is headquartered in Mississauga, Canada.