Critical Review: Celadon Group (CGI) and Universal Logistics (NASDAQ:ULH)

Celadon Group (NYSE: CGI) and Universal Logistics (NASDAQ:ULH) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

85.2% of Celadon Group shares are held by institutional investors. Comparatively, 27.8% of Universal Logistics shares are held by institutional investors. 3.8% of Celadon Group shares are held by insiders. Comparatively, 71.0% of Universal Logistics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Celadon Group and Universal Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Celadon Group N/A N/A N/A
Universal Logistics 0.55% 11.59% 2.94%

Valuation and Earnings

This table compares Celadon Group and Universal Logistics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Celadon Group $1.07 billion 0.18 $24.84 million $0.09 73.89
Universal Logistics $1.07 billion 0.65 $24.24 million $0.23 107.17

Celadon Group has higher earnings, but lower revenue than Universal Logistics. Celadon Group is trading at a lower price-to-earnings ratio than Universal Logistics, 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%. Universal Logistics pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Celadon Group pays out 22.2% of its earnings in the form of a dividend. Universal Logistics pays out 121.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Celadon Group has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, Universal Logistics has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Celadon Group and Universal Logistics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celadon Group 0 1 4 0 2.80
Universal Logistics 0 2 1 0 2.33

Celadon Group presently has a consensus price target of $12.00, suggesting a potential upside of 80.45%. Universal Logistics has a consensus price target of $23.00, suggesting a potential downside of 6.69%. Given Celadon Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Celadon Group is more favorable than Universal Logistics.

Summary

Universal Logistics beats Celadon Group on 9 of the 16 factors compared between the two stocks.

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.

Universal Logistics Company Profile

Universal Logistics Holdings, Inc., formerly Universal Truckload Services, Inc., is an asset-light provider of customized transportation and logistics solutions across the United States, Mexico, Canada and Colombia. The Company operates through two segments: the transportation segment and the logistics segment. The Company’s operations aggregated in the transportation segment are associated with individual freight shipments coordinated by its agents, company-managed terminals and specialized services operations. The Company’s operations aggregated in the logistics segment deliver value-added services and transportation services to specific customers. Its other operating segments consist of the Company’s subsidiaries that provide support services to other subsidiaries and to owner-operators, including shop maintenance and equipment leasing. The Company groups its services into three service categories: transportation, value-added and intermodal support.

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