CovenantLogisticsGroupInc . (NASDAQ:CVLG) vs. YRC Worldwide (NASDAQ:YRCW) Critical Contrast
CovenantLogisticsGroupInc . (NASDAQ:CVLG) and YRC Worldwide (NASDAQ:YRCW) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.
This table compares CovenantLogisticsGroupInc . and YRC Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
CovenantLogisticsGroupInc . has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, YRC Worldwide has a beta of 3.4, meaning that its stock price is 240% more volatile than the S&P 500.
Earnings & Valuation
This table compares CovenantLogisticsGroupInc . and YRC Worldwide’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CovenantLogisticsGroupInc .||$894.53 million||0.33||$8.48 million||$0.61||28.57|
|YRC Worldwide||$4.87 billion||0.05||-$104.00 million||($2.44)||-1.74|
CovenantLogisticsGroupInc . has higher earnings, but lower revenue than YRC Worldwide. YRC Worldwide is trading at a lower price-to-earnings ratio than CovenantLogisticsGroupInc ., indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for CovenantLogisticsGroupInc . and YRC Worldwide, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CovenantLogisticsGroupInc . presently has a consensus target price of $26.00, suggesting a potential upside of 49.00%. YRC Worldwide has a consensus target price of $3.50, suggesting a potential downside of 16.27%. Given CovenantLogisticsGroupInc .’s stronger consensus rating and higher possible upside, analysts plainly believe CovenantLogisticsGroupInc . is more favorable than YRC Worldwide.
Insider and Institutional Ownership
51.3% of CovenantLogisticsGroupInc . shares are held by institutional investors. Comparatively, 31.1% of YRC Worldwide shares are held by institutional investors. 32.5% of CovenantLogisticsGroupInc . shares are held by insiders. Comparatively, 6.4% of YRC Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
CovenantLogisticsGroupInc . beats YRC Worldwide on 9 of the 14 factors compared between the two stocks.
CovenantLogisticsGroupInc . Company Profile
Covenant Logistics Group, Inc. is a holding company, which engages in the provision of freight and logistics services. It operates through the following segments: Highway Services and Dedicated Contract Services. The Highway Services Segment includes two separate service offerings: Expedited Services (“”Expedited””) and Over-the-Road Services (“”OTR””), both of which transport one-way freight over nonroutine routes. The Dedicated Contract Services Segment provides similar transportation services, but does so pursuant to agreements whereby equipment available to a specific customer for shipments over particular routes at specified times. The company was founded by David Ray Parker in 1985 and is headquartered in Chattanooga, TN.
YRC Worldwide Company Profile
YRC Worldwide Inc., through its subsidiaries, provides a range of transportation services primarily in North America. The company operates in two segments, YRC Freight and Regional Transportation. The YRC Freight segment offers various services to transport industrial, commercial, and retail goods; and provides specialized services, including guaranteed expedited services, time-specific deliveries, cross-border services, coast-to-coast air delivery, product returns, temperature-sensitive shipment protection, and government material shipments. It serves manufacturing, wholesale, retail, and government customers. As of December 31, 2018, this segment had a fleet of approximately 7,600 tractors comprising 5,400 owned and 2,200 leased tractors; and 30,700 trailers consisting of 22,700 owned and 8,000 leased trailers. The Regional Transportation segment provides regional delivery services, which include next-day local area delivery and second-day, consolidation/distribution, protect-from-freezing and hazardous materials handling, truckload, and other specialized services; guaranteed and expedited delivery services consisting of day-definite, hour-definite, and time definite capabilities; interregional delivery services; and cross-border delivery services, as well as operates hollandregional.com, newpenn.com, and reddawayregional.com e-commerce Websites that offer online resources to manage transportation activities. This segment had a fleet of approximately 6,500 tractors, including 4,800 owned and 1,700 leased tractors; and 14,300 trailers comprising 10,600 owned and 3,700 leased trailers. The company was formerly known as Yellow Roadway Corporation and changed its name to YRC Worldwide Inc. in January 2006. YRC Worldwide Inc. was founded in 1924 and is headquartered in Overland Park, Kansas.
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