Head-To-Head Contrast: Covenant Logistics Group (CVLG) vs. Its Rivals

Covenant Logistics Group (NYSE:CVLGGet Free Report) is one of 102 publicly-traded companies in the “Ground Transportation” industry, but how does it contrast to its rivals? We will compare Covenant Logistics Group to related businesses based on the strength of its analyst recommendations, institutional ownership, valuation, risk, dividends, profitability and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Covenant Logistics Group 0.31% 9.15% 3.66%
Covenant Logistics Group Competitors 5.53% 9.26% 3.78%

Insider and Institutional Ownership

83.7% of Covenant Logistics Group shares are held by institutional investors. Comparatively, 60.7% of shares of all “Ground Transportation” companies are held by institutional investors. 36.7% of Covenant Logistics Group shares are held by insiders. Comparatively, 15.4% of shares of all “Ground Transportation” companies 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.

Dividends

Covenant Logistics Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Covenant Logistics Group pays out 254.5% 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, “Ground Transportation” companies pay a dividend yield of 1.4% and pay out 27.9% of their earnings in the form of a dividend. Covenant Logistics Group has raised its dividend for 1 consecutive years. Covenant Logistics Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Covenant Logistics Group has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Covenant Logistics Group’s rivals have a beta of 1.13, meaning that their average stock price is 13% more volatile than the S&P 500.

Valuation and Earnings

This table compares Covenant Logistics Group and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Covenant Logistics Group $1.16 billion $7.24 million 330.09
Covenant Logistics Group Competitors $8.60 billion $895.12 million 50.61

Covenant Logistics Group’s rivals have higher revenue and earnings than Covenant Logistics Group. Covenant Logistics Group 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.

Analyst Recommendations

This is a summary of recent ratings for Covenant Logistics Group and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covenant Logistics Group 0 1 4 1 3.00
Covenant Logistics Group Competitors 1330 6300 8383 250 2.46

Covenant Logistics Group currently has a consensus price target of $52.25, suggesting a potential upside of 43.90%. As a group, “Ground Transportation” companies have a potential upside of 10.28%. Given Covenant Logistics Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Covenant Logistics Group is more favorable than its rivals.

Summary

Covenant Logistics Group beats its rivals on 8 of the 15 factors compared.

Covenant Logistics Group Company Profile

(Get Free Report)

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.

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