Celadon Group (CGI) versus J.B. Hunt Transport Services (JBHT) Critical Survey
Celadon Group (NYSE: CGI) and J.B. Hunt Transport Services (NASDAQ:JBHT) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.
Institutional & Insider Ownership
85.3% of Celadon Group shares are owned by institutional investors. Comparatively, 71.6% of J.B. Hunt Transport Services shares are owned by institutional investors. 3.8% of Celadon Group shares are owned by company insiders. Comparatively, 4.3% of J.B. Hunt Transport Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Celadon Group has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, J.B. Hunt Transport Services has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
Celadon Group pays an annual dividend of $0.06 per share and has a dividend yield of 1.0%. J.B. Hunt Transport Services pays an annual dividend of $0.92 per share and has a dividend yield of 0.9%. Celadon Group pays out 30.0% of its earnings in the form of a dividend. J.B. Hunt Transport Services pays out 24.1% 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. Celadon Group has raised its dividend for 13 consecutive years. Celadon Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings for Celadon Group and J.B. Hunt Transport Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|J.B. Hunt Transport Services||0||7||7||0||2.50|
Celadon Group currently has a consensus price target of $22.60, suggesting a potential upside of 273.55%. J.B. Hunt Transport Services has a consensus price target of $98.79, suggesting a potential downside of 2.74%. Given Celadon Group’s stronger consensus rating and higher probable upside, analysts clearly believe Celadon Group is more favorable than J.B. Hunt Transport Services.
Earnings & Valuation
This table compares Celadon Group and J.B. Hunt Transport Services’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Celadon Group||$1.05 billion||0.16||$83.46 million||$0.20||30.25|
|J.B. Hunt Transport Services||$6.77 billion||1.64||$1.06 billion||$3.82||26.59|
J.B. Hunt Transport Services has higher revenue and earnings than Celadon Group. J.B. Hunt Transport Services is trading at a lower price-to-earnings ratio than Celadon Group, indicating that it is currently the more affordable of the two stocks.
This table compares Celadon Group and J.B. Hunt Transport Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|J.B. Hunt Transport Services||6.32%||30.00%||11.08%|
J.B. Hunt Transport Services beats Celadon Group on 10 of the 17 factors compared between the two stocks.
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.
About J.B. Hunt Transport Services
J.B. Hunt Transport Services, Inc. is a surface transportation, delivery, and logistics company in North America. The Company segments include Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS) and Truck (JBT). The Company, through its subsidiaries, provides transportation and delivery services to a range of customers and consumers throughout the continental United States, Canada and Mexico. The JBI segment draws on the intermodal services of rail carriers for the underlying linehaul movement of its equipment between rail ramps. Its DCS segment focuses on private fleet conversion and creation in replenishment, specialized equipment and final-mile delivery services. Its ICS segment provides traditional freight brokerage and transportation logistics solutions to customers through relationships with third-party carriers and integration. Its JBT segment offers full-load, dry-van freight, utilizing tractors operating over roads and highways.
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