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

Institutional and Insider Ownership

62.1% of Covenant Transportation Group shares are held by institutional investors. Comparatively, 71.3% of shares of all “Ground Freight & Logistics” companies are held by institutional investors. 35.2% of Covenant Transportation Group shares are held by insiders. Comparatively, 12.0% of shares of all “Ground Freight & Logistics” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Covenant Transportation Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Covenant Transportation Group $678.55 million $97.66 million 46.82
Covenant Transportation Group Competitors $5.92 billion $1.74 billion -6.37

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

Profitability

This table compares Covenant Transportation Group and its peers’ 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 10.86% 15.03% 5.33%

Volatility and Risk

Covenant Transportation Group has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, Covenant Transportation Group’s peers have a beta of 1.38, meaning that their average stock price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Covenant Transportation Group and its peers, as provided 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 180 1287 1785 70 2.53

Covenant Transportation Group currently has a consensus price target of $23.00, indicating a potential downside of 18.12%. As a group, “Ground Freight & Logistics” companies have a potential upside of 10.36%. Given Covenant Transportation Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe Covenant Transportation Group has less favorable growth aspects than its peers.

Summary

Covenant Transportation Group peers beat Covenant Transportation Group on 10 of the 13 factors compared.

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.

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