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Analyzing Covenant Transportation Group (CVTI) & Celadon Group (CGIP)


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

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 0.49 $55.43 million $0.84 22.51
Celadon Group $1.07 billion 0.02 $24.84 million N/A N/A

Covenant Transportation Group has higher earnings, but lower revenue than Celadon Group.

Profitability

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 9.22% 11.56% 5.14%
Celadon Group N/A N/A N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Covenant Transportation Group and Celadon Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covenant Transportation Group 1 1 3 0 2.40
Celadon Group 0 0 1 0 3.00

Covenant Transportation Group currently has a consensus price target of $35.75, indicating a potential upside of 89.05%. Celadon Group has a consensus price target of $10.00, indicating a potential upside of 1,198.70%. Given Celadon Group’s stronger consensus rating and higher possible upside, analysts clearly believe Celadon Group is more favorable than Covenant Transportation Group.

Insider & Institutional Ownership

63.9% of Covenant Transportation Group shares are owned by institutional investors. Comparatively, 5.6% 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.

Risk & Volatility

Covenant Transportation Group has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Celadon Group has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Summary

Covenant Transportation Group beats Celadon Group on 8 of the 12 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., 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.

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