Cargojet (OTCMKTS:CGJTF) vs. Air T (NASDAQ:AIRTP) Critical Review

Cargojet (OTCMKTS:CGJTF) and Air T (NASDAQ:AIRTP) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings for Cargojet and Air T, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cargojet	0	1	2	0	2.67
Air T	0	0	0	0	0.00

Profitability

This table compares Cargojet and Air T’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cargojet	3.62%	4.96%	1.75%
Air T	N/A	N/A	N/A

Valuation & Earnings

This table compares Cargojet and Air T”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cargojet	$710.45 million	1.23	$57.40 million	$1.49	39.24
Air T	$272.47 million	N/A	N/A	N/A	N/A

Cargojet has higher revenue and earnings than Air T.

Dividends

Cargojet pays an annual dividend of $1.12 per share and has a dividend yield of 1.9%. Air T pays an annual dividend of $2.00 per share and has a dividend yield of 10.4%. Cargojet pays out 75.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Cargojet beats Air T on 6 of the 8 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 Air T

Air T, Inc., through its subsidiaries, provides overnight air cargo, ground equipment sale, and commercial jet engines and parts in the United States and internationally. The Overnight Air Cargo segment offers air express delivery services. As of March 31, 2023, this segment had 85 aircraft under the dry-lease agreements with FedEx. The Ground Equipment Sales segment manufactures, sells, and services aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles, and other specialized equipment. This segment sells its products to passenger and cargo airlines, ground handling companies, the United States Air Force, airports, and industrial customers. The Commercial Aircraft, Engines and Parts segment offers commercial aircraft trading, leasing, and parts solutions; commercial aircraft storage, storage maintenance, and aircraft disassembly/part-out services; commercial aircraft parts sales, exchanges, procurement services, consignment programs, and overhaul and repair services; and aircraft instrumentation, avionics, and a range of electrical accessories for civilian, military transport, regional/commuter and business/commercial jet, and turboprop aircraft. This segment also provides composite aircraft structures, and repair and support services. Air T, Inc. was incorporated in 1980 and is based in Denver, North Carolina.