Analyzing Werner Enterprises (WERN) & Celadon Group (NYSE:CGI)
Werner Enterprises (NASDAQ: WERN) and Celadon Group (NYSE:CGI) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
This is a breakdown of recent recommendations and price targets for Werner Enterprises and Celadon Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Werner Enterprises currently has a consensus target price of $29.13, indicating a potential downside of 4.35%. Celadon Group has a consensus target price of $20.72, indicating a potential upside of 350.36%. Given Celadon Group’s stronger consensus rating and higher possible upside, analysts clearly believe Celadon Group is more favorable than Werner Enterprises.
Werner Enterprises pays an annual dividend of $0.28 per share and has a dividend yield of 0.9%. Celadon Group pays an annual dividend of $0.08 per share and has a dividend yield of 1.7%. Werner Enterprises pays out 25.5% of its earnings in the form of a dividend. Celadon Group pays out 40.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Institutional & Insider Ownership
66.2% of Werner Enterprises shares are held by institutional investors. 34.8% of Werner Enterprises shares are held by company insiders. Comparatively, 3.8% of Celadon Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Werner Enterprises and Celadon Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Werner Enterprises||$2.05 billion||1.07||$334.48 million||$1.10||27.68|
|Celadon Group||$1.05 billion||0.12||$83.46 million||$0.20||23.00|
Werner Enterprises has higher revenue and earnings than Celadon Group. Celadon Group is trading at a lower price-to-earnings ratio than Werner Enterprises, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Werner Enterprises has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, Celadon Group has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.
This table compares Werner Enterprises and Celadon Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Werner Enterprises beats Celadon Group on 10 of the 16 factors compared between the two stocks.
About Werner Enterprises
Werner Enterprises, Inc. is a transportation and logistics company. The Company is engaged in transporting truckload shipments of general commodities in both interstate and intrastate commerce. It operates through two segments: Truckload and Werner Logistics. It provides logistics services through its Werner Logistics division. As of December 31, 2016, it had a fleet of approximately 7,100 trucks, of which 6,305 were company-operated and 795 were owned and operated by independent contractors. Its Werner Logistics division operated 74 intermodal drayage trucks as of December 31, 2016. Its Truckload segment comprises the One-Way Truckload and Specialized Services units. It operates in several provinces of Canada to provide through-trailer service into and out of Mexico. Its Werner Logistic segment is a non-asset-based transportation and logistics provider and comprises four operating units: truck brokerage, freight management, the intermodal and Werner Global Logistics international.
About Celadon Group
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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