Covenant Transportation Group (NASDAQ: CVTI) is one of 28 publicly-traded companies in the “Ground Freight & Logistics” industry, but how does it compare to its competitors? We will compare Covenant Transportation Group to related companies based off the strength of its analyst recommendations, institutional ownership, earnings, dividends, valuation, risk and profitability.

Institutional & Insider Ownership

62.1% of Covenant Transportation Group shares are owned by institutional investors. Comparatively, 71.4% of shares of all “Ground Freight & Logistics” companies are owned by institutional investors. 35.2% of Covenant Transportation Group shares are owned by company insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Covenant Transportation Group has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Covenant Transportation Group’s competitors have a beta of 1.36, indicating that their average share price is 36% more volatile than the S&P 500.

Profitability

This table compares Covenant Transportation Group and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covenant Transportation Group 1.60% 4.65% 1.77%
Covenant Transportation Group Competitors 11.42% 16.36% 5.73%

Analyst Recommendations

This is a summary of current ratings and price targets for Covenant Transportation Group and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covenant Transportation Group 0 2 2 0 2.50
Covenant Transportation Group Competitors 227 1365 1807 71 2.50

Covenant Transportation Group currently has a consensus target price of $23.00, suggesting a potential downside of 10.96%. All “Ground Freight & Logistics” companies have a potential upside of 15.13%. Given Covenant Transportation Group’s competitors higher probable upside, analysts plainly believe Covenant Transportation Group has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Covenant Transportation Group and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Covenant Transportation Group $678.55 million $97.66 million 43.05
Covenant Transportation Group Competitors $5.89 billion $1.72 billion -6.29

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

Summary

Covenant Transportation Group competitors beat Covenant Transportation Group on 9 of the 13 factors compared.

Covenant Transportation Group Company Profile

Covenant Transportation Group, Inc. is a provider of expedited long haul freight transportation, primarily using two-person driver teams in transcontinental lanes. The Company’s services also include refrigerated, dedicated, cross-border, regional and brokerage. The Company’s segments include Truckload and Other. The Truckload segment includes the operations of Covenant Transport, Inc. (Covenant Transport), its flagship operation, which provides expedited long haul, dedicated, temperature-controlled and regional solo-driver service; Southern Refrigerated Transport, Inc. (SRT), which provides primarily long haul, regional, dedicated and intermodal temperature-controlled service, and Star Transportation, Inc. (Star), which provides regional solo-driver and dedicated services, primarily in the southeastern United States. The Company provides truckload transportation services throughout the continental United States, into and out of Mexico, and into and out of portions of Canada.

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