Critical Review: Cargojet (CGJTF) & The Competition

Cargojet (OTCMKTS:CGJTFGet Free Report) is one of 60 public companies in the “Air Freight & Logistics” industry, but how does it contrast to its rivals? We will compare Cargojet to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Cargojet and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cargojet 3.62% 4.96% 1.75%
Cargojet Competitors -461.09% -1.84% -8.34%

Institutional & Insider Ownership

42.7% of shares of all “Air Freight & Logistics” companies are held by institutional investors. 18.3% of shares of all “Air Freight & Logistics” companies 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.

Earnings & Valuation

This table compares Cargojet and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cargojet $710.45 million $57.40 million 40.64
Cargojet Competitors $12.35 billion $608.26 million 14.25

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

Dividends

Cargojet pays an annual dividend of $1.12 per share and has a dividend yield of 1.8%. Cargojet pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Air Freight & Logistics” companies pay a dividend yield of 2.6% and pay out 51.2% of their earnings in the form of a dividend. Cargojet lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cargojet and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cargojet 0 1 2 0 2.67
Cargojet Competitors 597 1966 2537 104 2.41

As a group, “Air Freight & Logistics” companies have a potential upside of 18.49%. Given Cargojet’s rivals higher possible upside, analysts clearly believe Cargojet has less favorable growth aspects than its rivals.

Summary

Cargojet rivals beat Cargojet on 8 of the 14 factors compared.

About Cargojet

(Get Free Report)

Cargojet Inc. provides time sensitive overnight air cargo services and carriers in Canada. It operates domestic air cargo network services between 16 Canadian cities; and provides dedicated aircraft to customers on an aircraft, crew, maintenance, and insurance basis operating between points in Canada, North and South America, and Europe. The company operates scheduled international routes for various cargo customers between the United States and Bermuda; and between Canada, the United Kingdom, and Germany. In addition, it offers aircraft to customers on an ad hoc charter basis operating between points in Canada, the United States, and other international destinations; and specialty charter services for livestock shipments, military equipment movements, emergency relief supplies, and virtually large shipments across North America, South America, the Caribbean, and Europe. Further, the company is involved in the aircraft operation and maintenance, flight planning and dispatch, crew planning and training, ground handling, and commercial airline cargo management businesses. The company operates a fleet of 41 aircraft. Cargojet Inc. was founded in 2001 and is headquartered in Mississauga, Canada.

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