Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Knight-Swift Transportation Holdings Inc. (KNX) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Knight-Swift Transportation Holdings Inc. (KNX) - free report >>
Image: Bigstock
KNX vs. SAIA: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Truck sector have probably already heard of Knight-Swift Transportation Holdings (KNX - Free Report) and Saia (SAIA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Knight-Swift Transportation Holdings and Saia have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KNX currently has a forward P/E ratio of 15.65, while SAIA has a forward P/E of 37.44. We also note that KNX has a PEG ratio of 1.04. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SAIA currently has a PEG ratio of 2.06.
Another notable valuation metric for KNX is its P/B ratio of 1.22. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SAIA has a P/B of 5.30.
These metrics, and several others, help KNX earn a Value grade of A, while SAIA has been given a Value grade of C.
Both KNX and SAIA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KNX is the superior value option right now.