Hennessy Capital Acquisition Corp. II (NASDAQ: DSKE) and Celadon Group (NYSE:CGI) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Hennessy Capital Acquisition Corp. II and Celadon Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hennessy Capital Acquisition Corp. II N/A -24.73% -3.71%
Celadon Group N/A N/A N/A

Institutional and Insider Ownership

17.1% of Hennessy Capital Acquisition Corp. II shares are owned by institutional investors. Comparatively, 85.3% of Celadon Group shares are owned by institutional investors. 20.0% of Hennessy Capital Acquisition Corp. II shares are owned by insiders. Comparatively, 3.8% of Celadon Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Hennessy Capital Acquisition Corp. II has a beta of -0.21, indicating that its share price is 121% less volatile than the S&P 500. Comparatively, Celadon Group has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Hennessy Capital Acquisition Corp. II and Celadon Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hennessy Capital Acquisition Corp. II 0 0 4 0 3.00
Celadon Group 0 3 4 0 2.57

Hennessy Capital Acquisition Corp. II currently has a consensus price target of $14.50, indicating a potential upside of 7.17%. Celadon Group has a consensus price target of $25.50, indicating a potential upside of 385.71%. Given Celadon Group’s higher possible upside, analysts plainly believe Celadon Group is more favorable than Hennessy Capital Acquisition Corp. II.

Earnings & Valuation

This table compares Hennessy Capital Acquisition Corp. II and Celadon Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hennessy Capital Acquisition Corp. II $682.32 million 0.88 $74.48 million N/A N/A
Celadon Group $1.05 billion 0.14 $83.46 million $0.20 26.25

Celadon Group has higher revenue and earnings than Hennessy Capital Acquisition Corp. II.

Dividends

Celadon Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.8%. Hennessy Capital Acquisition Corp. II does not pay a dividend. Celadon Group pays out 20.0% of its earnings in the form of a dividend.

Summary

Celadon Group beats Hennessy Capital Acquisition Corp. II on 8 of the 12 factors compared between the two stocks.

About Hennessy Capital Acquisition Corp. II

Daseke, Inc. is a consolidator of the open deck freight market in North America. The Company provides open deck transportation and logistics. It operates through two segments: Flatbed Solutions and Specialized Solutions. The Flatbed Solutions segment focuses on delivering transportation and logistics solutions that principally require the use of flatbed and retractable-sided transportation equipment. The Specialized Solutions segment focuses on delivering transportation and logistics solutions that principally include heavy haul, high-value customized, over-dimensional, step deck and removable gooseneck trailer solutions. The Company, as of September 5, 2017, had a fleet of over 3,800 trucks and over 8,200 flatbed and specialized trailer. The Company serves customers in the United States, Canada and Mexico.

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 and refrigerated; 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.

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