Head to Head Contrast: Uber Technologies (NYSE:UBER) vs. Covenant Logistics Group (NYSE:CVLG)

Covenant Logistics Group (NYSE:CVLG) and Uber Technologies (NYSE:UBER) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings for Covenant Logistics Group and Uber Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Covenant Logistics Group	1	1	4	1	2.71
Uber Technologies	3	4	34	2	2.81

Covenant Logistics Group presently has a consensus price target of $51.80, indicating a potential upside of 53.25%. Uber Technologies has a consensus price target of $103.03, indicating a potential upside of 46.09%. Given Covenant Logistics Group’s higher possible upside, equities research analysts clearly believe Covenant Logistics Group is more favorable than Uber Technologies.

Risk and Volatility

Covenant Logistics Group has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Uber Technologies has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

83.7% of Covenant Logistics Group shares are held by institutional investors. Comparatively, 80.2% of Uber Technologies shares are held by institutional investors. 36.7% of Covenant Logistics Group shares are held by company insiders. Comparatively, 3.8% of Uber Technologies shares are held by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Covenant Logistics Group	0.31%	9.14%	3.68%
Uber Technologies	17.34%	43.36%	19.15%

Valuation and Earnings

This table compares Covenant Logistics Group and Uber Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Covenant Logistics Group	$1.16 billion	0.74	$7.24 million	$0.11	307.27
Uber Technologies	$52.02 billion	2.77	$10.05 billion	$4.55	15.50

Uber Technologies has higher revenue and earnings than Covenant Logistics Group. Uber Technologies 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

Uber Technologies beats Covenant Logistics Group on 10 of the 15 factors compared between the two stocks.

About Covenant Logistics Group

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. The Dedicated segment provides customers with committed truckload capacity over contracted periods 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. The Warehousing segment provides day-to-day warehouse management services to customers. The segment also provides shuttle and switching services 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. As of December 31, 2021, it operated 2,291 tractors and 5,331 trailers. 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 Uber Technologies

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services. The Delivery segment allows to search for and discover restaurants to grocery, alcohol, convenience, and other retails; order a meal or other items; and Uber direct, a white-label Delivery-as-a-Service for retailers and restaurants, as well as advertising. The Freight segment manages transportation and logistics network, which connects shippers and carriers in digital marketplace including carriers upfronts, pricing, and shipment booking; and provides on-demand platform to automate logistics end-to-end transactions for small-and medium-sized business to global enterprises. The company was formerly known as Ubercab, Inc. and changed its name to Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded in 2009 and is headquartered in San Francisco, California.