Schneider National (NYSE: SNDR) and Covenant Transportation Group (NASDAQ:CVTI) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.
Schneider National pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Covenant Transportation Group does not pay a dividend. Schneider National pays out 22.7% of its earnings in the form of a dividend.
21.5% of Schneider National shares are held by institutional investors. Comparatively, 63.3% of Covenant Transportation Group shares are held by institutional investors. 35.2% of Covenant Transportation Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Schneider National and Covenant Transportation Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Covenant Transportation Group||1.82%||5.30%||2.02%|
Earnings and Valuation
This table compares Schneider National and Covenant Transportation Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Schneider National||$4.05 billion||1.16||$156.85 million||$0.88||30.27|
|Covenant Transportation Group||$670.65 million||0.81||$16.83 million||$0.69||43.28|
Schneider National has higher revenue and earnings than Covenant Transportation Group. Schneider National is trading at a lower price-to-earnings ratio than Covenant Transportation Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Schneider National and Covenant Transportation Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Covenant Transportation Group||0||3||1||0||2.25|
Schneider National presently has a consensus price target of $24.50, indicating a potential downside of 8.03%. Covenant Transportation Group has a consensus price target of $23.50, indicating a potential downside of 21.30%. Given Schneider National’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Schneider National is more favorable than Covenant Transportation Group.
Schneider National beats Covenant Transportation Group on 11 of the 14 factors compared between the two stocks.
About Schneider National
Schneider National, Inc. is a provider of transportation, logistics and related services. The Company’s transportation solutions include one-way, intermodal, dedicated, bulk, transport management, trans loading services, international services and Schneider payment services. Its supply chain management and consulting services include logistics solution design, global supply chain services, enterprise and market entry assistance, and sourcing and compliance. Schneider Logistics is the subsidiary of the Company, which provides supply chain management technology, managed services, engineering services and freight payment. The Company operates approximately 10,000 tractors, around 28,800 trailers and around 14,300 containers. It has operations in around 36 locations in Canada, the United States and Mexico.
About Covenant Transportation Group
Covenant Transportation Group, Inc. is a provider of expedited long haul freight transportation, primarily using two-person driver teams in transcontinental lanes. The Company’s services also include refrigerated, dedicated, cross-border, regional and brokerage. The Company’s segments include Truckload and Other. The Truckload segment includes the operations of Covenant Transport, Inc. (Covenant Transport), its flagship operation, which provides expedited long haul, dedicated, temperature-controlled and regional solo-driver service; Southern Refrigerated Transport, Inc. (SRT), which provides primarily long haul, regional, dedicated and intermodal temperature-controlled service, and Star Transportation, Inc. (Star), which provides regional solo-driver and dedicated services, primarily in the southeastern United States. The Company provides truckload transportation services throughout the continental United States, into and out of Mexico, and into and out of portions of Canada.
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