Covenant Logistics Group (NASDAQ:CVLG) and Daseke (NASDAQ:DSKE) Financial Comparison

Covenant Logistics Group (NASDAQ:CVLGGet Free Report) and Daseke (NASDAQ:DSKEGet Free Report) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Institutional & Insider Ownership

83.7% of Covenant Logistics Group shares are held by institutional investors. Comparatively, 71.5% of Daseke shares are held by institutional investors. 36.5% of Covenant Logistics Group shares are held by company insiders. Comparatively, 5.8% of Daseke shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Covenant Logistics Group has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Daseke has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500.

Profitability

This table compares Covenant Logistics Group and Daseke’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covenant Logistics Group 4.98% 14.85% 6.60%
Daseke -1.13% -30.76% -1.51%

Analyst Recommendations

This is a breakdown of recent ratings for Covenant Logistics Group and Daseke, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covenant Logistics Group 0 0 3 0 3.00
Daseke 0 1 1 0 2.50

Covenant Logistics Group presently has a consensus target price of $68.67, indicating a potential upside of 55.50%. Daseke has a consensus target price of $10.15, indicating a potential upside of 22.44%. Given Covenant Logistics Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Covenant Logistics Group is more favorable than Daseke.

Valuation & Earnings

This table compares Covenant Logistics Group and Daseke’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Covenant Logistics Group $1.10 billion 0.52 $55.23 million $4.03 10.96
Daseke $1.57 billion 0.25 -$17.70 million ($0.59) -14.05

Covenant Logistics Group has higher earnings, but lower revenue than Daseke. Daseke is trading at a lower price-to-earnings ratio than Covenant Logistics Group, indicating that it is currently the more affordable of the two stocks.

Summary

Covenant Logistics Group beats Daseke on 12 of the 14 factors compared between the two stocks.

About Covenant Logistics Group

(Get Free Report)

Covenant Logistics Group, Inc., together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows. Its Dedicated segment provides customers with committed truckload capacity over contracted periods with the goal of three to five years in length using equipment either owned or leased by the company. The Managed Freight segment offers brokerage services, including logistics capacity by outsourcing the carriage of customers' freight to third parties; and transport management services, such as logistics services on a contractual basis to customers who prefer to outsource their logistics needs. Its Warehousing segment provides day-to-day warehouse management services to customers, as well as shuttle and switching services related to shuttling containers and trailers. The company also engages in used equipment sales and leasing business. It serves transportation companies, such as parcel freight forwarders, less-than-truckload carriers, and third-party logistics providers; and traditional truckload customers, including manufacturers, retailers, and food and beverage shippers. The company was formerly known as Covenant Transportation Group, Inc. and changed its name to Covenant Logistics Group, Inc. in July 2020. Covenant Logistics Group, Inc. was founded in 1986 and is based in Chattanooga, Tennessee.

About Daseke

(Get Free Report)

Daseke, Inc. provides transportation and logistics solutions in the United States, Canada, and Mexico. It operates in two segments, Flatbed Solutions and Specialized Solutions. The company transports aircraft parts, manufacturing equipment, structural steel, pressure vessels, wind turbine blades, commercial glass, high security cargo, industrial and hazardous waste, arms, ammunition and explosives, lumber, and building and construction materials, as well as heavy machinery, such as construction, mining, and agriculture. It also offers logistical planning and warehousing services. As of December 31, 2023, the company operated 2,971 company-owned tractors and 1,798 independent owned and operated contractors tractors; and 9,669 trailers. Daseke, Inc. is headquartered in Addison, Texas.

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