Cargojet (OTCMKTS:CGJTF) & J.B. Hunt Transport Services (NASDAQ:JBHT) Head to Head Analysis

Cargojet (OTCMKTS:CGJTF) and J.B. Hunt Transport Services (NASDAQ:JBHT) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and price targets for Cargojet and J.B. Hunt Transport Services, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cargojet	0	0	0	0	N/A
J.B. Hunt Transport Services	0	6	12	0	2.67

J.B. Hunt Transport Services has a consensus price target of $183.50, indicating a potential upside of 4.58%. Given J.B. Hunt Transport Services’ higher possible upside, analysts clearly believe J.B. Hunt Transport Services is more favorable than Cargojet.

Profitability

This table compares Cargojet and J.B. Hunt Transport Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cargojet	N/A	N/A	N/A
J.B. Hunt Transport Services	4.90%	14.77%	7.16%

Dividends

Cargojet pays an annual dividend of $0.60 per share and has a dividend yield of 0.6%. J.B. Hunt Transport Services pays an annual dividend of $1.72 per share and has a dividend yield of 1.0%. Cargojet pays out -238.6% of its earnings in the form of a dividend. J.B. Hunt Transport Services pays out 27.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. J.B. Hunt Transport Services has increased its dividend for 21 consecutive years. J.B. Hunt Transport Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

17.2% of Cargojet shares are owned by institutional investors. Comparatively, 74.9% of J.B. Hunt Transport Services shares are owned by institutional investors. 2.1% of J.B. Hunt Transport Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Cargojet and J.B. Hunt Transport Services”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cargojet	N/A	N/A	N/A	($0.25)	-396.19
J.B. Hunt Transport Services	$12.34 billion	1.47	$728.29 million	$6.30	27.85

J.B. Hunt Transport Services has higher revenue and earnings than Cargojet. Cargojet is trading at a lower price-to-earnings ratio than J.B. Hunt Transport Services, indicating that it is currently the more affordable of the two stocks.

Summary

J.B. Hunt Transport Services beats Cargojet on 12 of the 13 factors compared between the two stocks.

About Cargojet

Cargojet Inc. provides time sensitive overnight air cargo services and carriers in Canada. It operates domestic air cargo network services between 16 Canadian cities; and provides dedicated aircraft to customers on an aircraft, crew, maintenance, and insurance basis operating between points in Canada, North and South America, and Europe. The company operates scheduled international routes for various cargo customers between the United States and Bermuda; and between Canada, the United Kingdom, and Germany. In addition, it offers aircraft to customers on an ad hoc charter basis operating between points in Canada, the United States, and other international destinations; and specialty charter services for livestock shipments, military equipment movements, emergency relief supplies, and virtually large shipments across North America, South America, the Caribbean, and Europe. Further, the company is involved in the aircraft operation and maintenance, flight planning and dispatch, crew planning and training, ground handling, and commercial airline cargo management businesses. The company operates a fleet of 41 aircraft. Cargojet Inc. was founded in 2001 and is headquartered in Mississauga, Canada.

About J.B. Hunt Transport Services

J.B. Hunt Transport Services, Inc. provides surface transportation, delivery, and logistic services in the United States. It operates through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT). The JBI segment offers intermodal freight solutions. It operates 118,171 pieces of company-owned trailing equipment; owns and maintains its chassis fleet of 100,825 units; and manages a fleet of 5,944 company-owned tractors, 436 independent contractor trucks, and 7,567 company drivers. The DCS segment designs, develops, and executes supply chain solutions that support various transportation networks. As of December 31, 2023, it operated 12,574 company-owned trucks, 674 customer-owned trucks, and 4 contractor trucks. The company also operates 27,194 owned pieces of trailing equipment and 5,406 customer-owned trailers. The ICS segment provides freight brokerage and transportation logistics solutions; flatbed, refrigerated, expedited, and less-than-truckload, as well as dry-van and intermodal solutions; online multimodal marketplace; and logistics management for customers to outsource their transportation functions. The FMS segment offers delivery services through 1,166 company-owned trucks, 225 customer-owned trucks, and 20 independent contractor trucks; and 1,212 owned pieces of trailing equipment and 102 customer-owned trailers. The JBT segment provides dry-van freight services by utilizing tractors and trailers operating over roads and highways through 27 company-owned tractors and 13,561 company-owned trailers. It also transports or arranges for the transportation of freight, such as general merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, agricultural products, electronics, and chemicals. The company was incorporated in 1961 and is headquartered in Lowell, Arkansas.