J B Hunt Transport Services (NASDAQ:JBHT) and Celadon Group (OTCMKTS:CGIP) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Risk and Volatility
J B Hunt Transport Services has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Celadon Group has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.
73.5% of J B Hunt Transport Services shares are owned by institutional investors. Comparatively, 4.4% of Celadon Group shares are owned by institutional investors. 4.2% of J B Hunt Transport Services shares are owned by insiders. Comparatively, 3.8% of Celadon Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares J B Hunt Transport Services and Celadon Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|J B Hunt Transport Services||$7.19 billion||1.62||$686.26 million||$3.74||28.48|
|Celadon Group||$1.07 billion||0.06||$24.84 million||N/A||N/A|
J B Hunt Transport Services has higher revenue and earnings than Celadon Group.
This table compares J B Hunt Transport Services and Celadon Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|J B Hunt Transport Services||9.49%||27.71%||12.02%|
This is a breakdown of current ratings and recommmendations for J B Hunt Transport Services and Celadon Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|J B Hunt Transport Services||1||11||6||0||2.28|
J B Hunt Transport Services currently has a consensus price target of $128.81, suggesting a potential upside of 20.94%. Celadon Group has a consensus price target of $10.00, suggesting a potential upside of 323.73%. Given Celadon Group’s stronger consensus rating and higher possible upside, analysts plainly believe Celadon Group is more favorable than J B Hunt Transport Services.
J B Hunt Transport Services pays an annual dividend of $0.96 per share and has a dividend yield of 0.9%. Celadon Group does not pay a dividend. J B Hunt Transport Services pays out 25.7% of its earnings in the form of a dividend. J B Hunt Transport Services has raised its dividend for 14 consecutive years.
J B Hunt Transport Services beats Celadon Group on 11 of the 15 factors compared between the two stocks.
About J B Hunt Transport Services
J.B. Hunt Transport Services, Inc., together with its subsidiaries, provides surface transportation and delivery services in the continental United States, Canada, and Mexico. It operates through four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), and Truckload (JBT). The JBI segment offers intermodal freight solutions, such as origin and destination pickup, and delivery services. It operates 88,610 pieces of company-owned trailing equipment; owns and maintains its chassis fleet comprising 77,946 units; and manages a fleet of 4,776 company-owned tractors, 764 independent contractor trucks, and 5,782 company drivers. The DCS segment designs, develops, and executes supply-chain solutions that support various transportation networks. As of December 31, 2017, it operated 8,124 company-owned trucks, 544 customer-owned trucks, and 59 independent contractor trucks, as well as 18,579 owned pieces of trailing equipment, and 7,232 customer-owned trailers. The ICS segment provides traditional freight brokerage and transportation logistics solutions; and flatbed, refrigerated, expedited, and less-than-truckload solutions, as well as various dry-van and intermodal solutions. It also offers single-source logistics management for customers that desire to outsource their transportation functions. This segment operates 44 remote sales offices or branches. The JBT segment provides full-load and dry-van freight services by utilizing tractors operating over roads and highways. As of December 31, 2017, it operated 1,291 company-owned tractors. The company also transports or arranges for the transportation of freight, including general merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, agricultural products, electronics, and chemicals. J.B. Hunt Transport Services, Inc. was founded in 1961 and is headquartered in Lowell, Arkansas.
About Celadon Group
Celadon Group, Inc., through its subsidiaries, provides transportation services between the United States, Canada, and Mexico. It operates through three segments: Asset-Based, Asset-Light, and Equipment Leasing and Services. The Asset-Based segment offers dry van, refrigerated, and flatbed services; cross-border services between the United States and each of Mexico and Canada; intra-Mexico and intra-Canada services; contract services; regional and specialized short haul services; and rail intermodal services. The Asset-Light segment provides freight brokerage, warehousing, less-than truckload consolidation, and supply chain logistics services. The Equipment Leasing and Services segment offers tractor and trailer sales and leasing services, as well as insurance, maintenance, and other ancillary services primarily to the independent contractors and other trucking fleets. The company transports various types of freight, including tobacco, consumer goods, automotive parts, various home products and fixtures, lawn tractors and assorted equipment, light bulbs, and various parts for engines. Celadon Group, Inc. was founded in 1985 and is headquartered in Indianapolis, Indiana.
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