Schneider National (SNDR) & Covenant Transportation Group (CVTI) Critical Survey

Schneider National (NYSE: SNDR) and Covenant Transportation Group (NASDAQ:CVTI) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Profitability

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
Schneider National 3.61% 10.79% 4.79%
Covenant Transportation Group 1.82% 5.30% 2.02%

Analyst Recommendations

This is a summary of current ratings and target prices for Schneider National and Covenant Transportation Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schneider National 0 3 8 0 2.73
Covenant Transportation Group 0 3 1 0 2.25

Schneider National currently has a consensus target price of $24.50, suggesting a potential downside of 8.14%. Covenant Transportation Group has a consensus target price of $23.50, suggesting a potential downside of 18.60%. Given Schneider National’s stronger consensus rating and higher probable upside, analysts clearly believe Schneider National is more favorable than Covenant Transportation Group.

Dividends

Schneider National pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Covenant Transportation Group does not pay a dividend.

Earnings and Valuation

This table compares Schneider National and Covenant Transportation Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Schneider National $4.05 billion 1.17 $156.85 million N/A N/A
Covenant Transportation Group $670.65 million 0.79 $16.83 million $0.66 43.74

Schneider National has higher revenue and earnings than Covenant Transportation Group.

Institutional & Insider Ownership

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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Schneider National beats Covenant Transportation Group on 10 of the 12 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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