Head to Head Analysis: Celadon Group (CGI) and Old Dominion Freight Line (ODFL)

Celadon Group (NYSE: CGI) and Old Dominion Freight Line (NASDAQ:ODFL) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Insider & Institutional Ownership

85.2% of Celadon Group shares are owned by institutional investors. Comparatively, 73.8% of Old Dominion Freight Line shares are owned by institutional investors. 3.8% of Celadon Group shares are owned by company insiders. Comparatively, 12.0% of Old Dominion Freight Line shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Celadon Group and Old Dominion Freight Line, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Celadon Group 0 3 4 0 2.57
Old Dominion Freight Line 0 7 4 0 2.36

Celadon Group presently has a consensus price target of $25.50, suggesting a potential upside of 372.22%. Old Dominion Freight Line has a consensus price target of $98.73, suggesting a potential downside of 9.24%. Given Celadon Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Celadon Group is more favorable than Old Dominion Freight Line.

Dividends

Celadon Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. Old Dominion Freight Line pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Celadon Group pays out 20.0% of its earnings in the form of a dividend. Old Dominion Freight Line pays out 10.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Celadon Group and Old Dominion Freight Line’s 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
Old Dominion Freight Line 10.19% 16.87% 11.61%

Risk & Volatility

Celadon Group has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Old Dominion Freight Line has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Valuation & Earnings

This table compares Celadon Group and Old Dominion Freight Line’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Celadon Group $1.05 billion 0.14 $83.46 million $0.20 27.00
Old Dominion Freight Line $3.12 billion 2.87 $718.76 million $3.85 28.25

Old Dominion Freight Line has higher revenue and earnings than Celadon Group. Celadon Group is trading at a lower price-to-earnings ratio than Old Dominion Freight Line, indicating that it is currently the more affordable of the two stocks.

Summary

Old Dominion Freight Line beats Celadon Group on 10 of the 15 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.

Old Dominion Freight Line Company Profile

Old Dominion Freight Line, Inc. is a union-free motor carrier providing regional, inter-regional and national less-than-truckload (LTL) services. The Company’s LTL services include ground and air expedited transportation for time-sensitive shipments, consumer household pickup and delivery and freight delivery services throughout North America. In addition to its LTL services, the Company offers a range of other value-added services that include container drayage, truckload brokerage, supply chain consulting and warehousing. As of December 31, 2016, the Company operated 226 service center locations, of which it owned 182 and leased 44. As of December 31, 2016, its network included 10 breakbulk facilities located in Rialto, California; Atlanta, Georgia; Columbus, Ohio; Indianapolis, Indiana; Greensboro, North Carolina; Harrisburg, Pennsylvania; Memphis and Morristown, Tennessee; Dallas, Texas, and Salt Lake City, Utah. As of December 31, 2016, the Company owned 7,994 tractors.

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