Comparing Grab (NASDAQ:GRAB) & Covenant Logistics Group (NYSE:CVLG)

Covenant Logistics Group (NYSE:CVLG) and Grab (NASDAQ:GRAB) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

This table compares Covenant Logistics Group and Grab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Covenant Logistics Group	0.31%	9.14%	3.68%
Grab	15.97%	8.83%	4.92%

Institutional and Insider Ownership

83.7% of Covenant Logistics Group shares are held by institutional investors. Comparatively, 55.5% of Grab shares are held by institutional investors. 36.7% of Covenant Logistics Group shares are held by company insiders. Comparatively, 3.6% of Grab shares are held 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.

Valuation & Earnings

This table compares Covenant Logistics Group and Grab”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Covenant Logistics Group	$1.16 billion	0.77	$7.24 million	$0.11	319.09
Grab	$3.37 billion	4.16	$268.00 million	$0.06	57.00

Grab has higher revenue and earnings than Covenant Logistics Group. Grab is trading at a lower price-to-earnings ratio than Covenant Logistics Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Covenant Logistics Group has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Covenant Logistics Group and Grab, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Covenant Logistics Group	0	1	4	2	3.14
Grab	1	1	8	1	2.82

Covenant Logistics Group currently has a consensus target price of $51.80, indicating a potential upside of 47.58%. Grab has a consensus target price of $6.01, indicating a potential upside of 75.60%. Given Grab’s higher possible upside, analysts plainly believe Grab is more favorable than Covenant Logistics Group.

Summary

Covenant Logistics Group beats Grab on 8 of the 15 factors compared between the two stocks.

About Covenant Logistics Group

Covenant Logistics Group, Inc., together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows. The Dedicated segment provides customers with committed truckload capacity over contracted periods using equipment either owned or leased by the company. The Managed Freight segment offers brokerage services, including logistics capacity by outsourcing the carriage of customers’ freight to third parties; and transport management services, such as logistics services on a contractual basis to customers who prefer to outsource their logistics needs. The Warehousing segment provides day-to-day warehouse management services to customers. The segment also provides shuttle and switching services to shuttling containers and trailers. The company also engages in used equipment sales and leasing business. It serves transportation companies, such as parcel freight forwarders, less-than-truckload carriers, and third-party logistics providers; and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. As of December 31, 2021, it operated 2,291 tractors and 5,331 trailers. The company was formerly known as Covenant Transportation Group, Inc. and changed its name to Covenant Logistics Group, Inc. in July 2020. Covenant Logistics Group, Inc. was founded in 1986 and is based in Chattanooga, Tennessee.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.