Covenant Transportation Group (NASDAQ: CVTI) and Quality Distribution (NASDAQ:QLTY) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Insider & Institutional Ownership

62.1% of Covenant Transportation Group shares are owned by institutional investors. 35.2% of Covenant Transportation Group shares 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Covenant Transportation Group and Quality Distribution, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covenant Transportation Group 0 2 2 0 2.50
Quality Distribution 0 0 0 0 N/A

Covenant Transportation Group currently has a consensus price target of $23.00, suggesting a potential downside of 10.96%. Given Covenant Transportation Group’s higher probable upside, equities research analysts clearly believe Covenant Transportation Group is more favorable than Quality Distribution.

Profitability

This table compares Covenant Transportation Group and Quality Distribution’s 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%
Quality Distribution 0.95% N/A 2.09%

Earnings & Valuation

This table compares Covenant Transportation Group and Quality Distribution’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Covenant Transportation Group $678.55 million 0.70 $97.66 million $0.60 43.05
Quality Distribution N/A N/A N/A N/A N/A

Covenant Transportation Group has higher revenue and earnings than Quality Distribution.

Summary

Covenant Transportation Group beats Quality Distribution on 7 of the 8 factors compared between the two stocks.

About Covenant Transportation Group

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.

About Quality Distribution

Quality Distribution Inc. is a United States-based provider of bulk transportation and logistics services. The Company also provides transportation and delivery services. The Company offers services, such as chemical bulk transportation, logistics, container and depot, intermodal, leasing and risk services. Its container and depot services for intermodal equipment include repair, maintenance and cleaning, and redistribution. Its intermodal services include tracking solutions, solutions regarding capacity, pre-clearing for shipments moving across borders, and management and control over every shipping segment from departure to delivery. It offers risk management consulting that covers insurance policy reviews, insurance or self-insurance analysis and brokerage relationship studies. It also offers audit services, electronic or on-site. It serves industries, including chemical, unconventional oil and gas, bulk liquid and food grade liquid.

Receive News & Ratings for Covenant Transportation Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Covenant Transportation Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.