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Knight-Swift Transportation Holdings Inc. (KNX) - free report >>
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Knight-Swift Transportation Holdings Inc. (KNX) - free report >>
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KNX vs. SAIA: Which Stock Should Value Investors Buy Now?
Investors interested in Transportation - Truck stocks are likely familiar with 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Knight-Swift Transportation Holdings and Saia are holding a Zacks Rank of # 1 (Strong Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
KNX currently has a forward P/E ratio of 15.25, while SAIA has a forward P/E of 35.52. We also note that KNX has a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SAIA currently has a PEG ratio of 1.95.
Another notable valuation metric for KNX is its P/B ratio of 1.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SAIA has a P/B of 4.97.
These are just a few of the metrics contributing to KNX's Value grade of A and SAIA's 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.