Critical Comparison: FRP (FRPH) & Celadon Group (CGI)

FRP (NASDAQ: FRPH) and Celadon Group (NYSE:CGI) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for FRP and Celadon Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FRP 0 0 0 0 N/A
Celadon Group 0 1 4 0 2.80

Celadon Group has a consensus target price of $12.00, indicating a potential upside of 81.82%. Given Celadon Group’s higher probable upside, analysts clearly believe Celadon Group is more favorable than FRP.

Valuation and Earnings

This table compares FRP and Celadon Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FRP $37.46 million 11.88 $30.03 million $3.00 14.82
Celadon Group $1.07 billion 0.18 $24.84 million $0.09 73.33

FRP has higher earnings, but lower revenue than Celadon Group. FRP is trading at a lower price-to-earnings ratio than Celadon Group, indicating that it is currently the more affordable of the two stocks.

Dividends

Celadon Group pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. FRP does not pay a dividend. Celadon Group pays out 22.2% of its earnings in the form of a dividend.

Institutional and Insider Ownership

46.2% of FRP shares are owned by institutional investors. Comparatively, 85.2% of Celadon Group shares are owned by institutional investors. 23.3% of FRP 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.

Profitability

This table compares FRP and Celadon Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FRP 75.11% -4.15% -2.91%
Celadon Group N/A N/A N/A

Risk & Volatility

FRP has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Celadon Group has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.

Summary

Celadon Group beats FRP on 9 of the 15 factors compared between the two stocks.

FRP Company Profile

FRP Holdings, Inc. is a holding company engaged in various real estate businesses. The Company conducts its business through its subsidiaries, FRP Maryland, Inc., FRP Development Corp. and Florida Rock Properties, Inc. The segments of the Company include leasing and management of warehouse and office building owned by the Company (the Asset Management Segment), leasing and management of mining royalty land owned by the Company (the Mining Royalty Lands Segment) and real property acquisition, entitlement, development and construction primarily for warehouse and office buildings (the Land Development and Construction Segment). The Company’s Asset Management Segment owns leases and manages warehouse and office buildings. Its Mining Royalty Lands Segment owns several properties comprising approximately 15,000 acres under lease for mining rents or royalties. Its Land Development and Construction Segment owns and monitors the parcels of land that are in various stages of development.

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 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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