Financial Analysis: Celadon Group (OTCMKTS:CGIP) & XPO (NYSE:XPO)

Celadon Group (OTCMKTS:CGIP) and XPO (NYSE:XPO) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Celadon Group and XPO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celadon Group	0	0	0	0	0.00
XPO	0	0	19	0	3.00

XPO has a consensus target price of $135.26, suggesting a potential upside of 12.75%. Given XPO’s stronger consensus rating and higher possible upside, analysts clearly believe XPO is more favorable than Celadon Group.

Valuation and Earnings

This table compares Celadon Group and XPO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celadon Group	N/A	N/A	N/A	N/A	N/A
XPO	$8.07 billion	1.75	$387.00 million	$3.25	36.91

XPO has higher revenue and earnings than Celadon Group.

Profitability

This table compares Celadon Group and XPO’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
XPO	4.87%	28.27%	5.77%

Risk and Volatility

Celadon Group has a beta of -1.31, meaning that its stock price is 231% less volatile than the S&P 500. Comparatively, XPO has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.

Institutional and Insider Ownership

97.7% of XPO shares are held by institutional investors. 3.8% of Celadon Group shares are held by company insiders. Comparatively, 2.9% of XPO shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

XPO beats Celadon Group on 9 of the 10 factors compared between the two stocks.

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.

About XPO

XPO, Inc. provides freight transportation services in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. The company operates in two segments, North American LTL and European Transportation. The North American LTL segment provides customers with less-than-truckload (LTL) services, such as geographic density and day-definite domestic services. This segment also offers cross-border U.S., Mexico, Canada, and the Caribbean, as well as engages in the operation of trailer manufacturing. The European Transportation segment offers dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, such as road-rail and road-short sea combinations. It provides its services to customers in various industries, such as industrial and manufacturing, retail and e-commerce, food and beverage, logistics and transportation, and consumer goods. The company was formerly known as XPO Logistics, Inc. and changed its name to XPO, Inc. in December 2022. XPO, Inc. was incorporated in 2000 and is based in Greenwich, Connecticut.