USA Truck (NASDAQ: USAK) and Celadon Group (NYSE:CGI) are both small-cap transportation companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitabiliy, analyst recommendations and valuation.
Celadon Group pays an annual dividend of $0.08 per share and has a dividend yield of 2.9%. USA Truck does not pay a dividend. Celadon Group pays out 40.0% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares USA Truck and Celadon Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|USA Truck||$420.15 million||0.16||$22.29 million||($1.33)||-6.34|
|Celadon Group||$1.05 billion||0.07||$83.46 million||$0.20||14.00|
Celadon Group has higher revenue and earnings than USA Truck. USA Truck is trading at a lower price-to-earnings ratio than Celadon Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
66.4% of USA Truck shares are owned by institutional investors. Comparatively, 98.9% of Celadon Group shares are owned by institutional investors. 3.5% of USA Truck 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for USA Truck and Celadon Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
USA Truck presently has a consensus target price of $8.08, suggesting a potential downside of 4.11%. Celadon Group has a consensus target price of $20.72, suggesting a potential upside of 639.88%. Given Celadon Group’s stronger consensus rating and higher possible upside, analysts plainly believe Celadon Group is more favorable than USA Truck.
This table compares USA Truck and Celadon Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
USA Truck has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500. Comparatively, Celadon Group has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.
Celadon Group beats USA Truck on 12 of the 15 factors compared between the two stocks.
USA Truck Company Profile
USA Truck, Inc. is a truckload carrier providing transportation of general commodities throughout the continental United States and into and out of portions of Mexico and Canada. The Company operates through two segments: Trucking and Strategic Capacity Solutions (SCS). The Trucking segment consists of truckload and dedicated freight services. The SCS segment consists of freight brokerage and rail intermodal services. The Company transports full dry van trailer loads of freight from origin to destination without intermediate stops or handling. The Company offers a range of truckload and logistics services to a customer base that spans a range of industries. The Company’s fleet of approximately 1,832 tractors consists of 1,568 company tractors and 264 independent contractor tractors. The Company owns approximately 6,200 trailers. The Company also transports general commodities into and out of Mexico by allowing through-trailer service from its terminal in Laredo, Texas.
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, refrigerated and flatbed service; 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. Celadon’s equipment leasing and services segment consists primarily of leasing activities with independent contractors and other trucking fleets.
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