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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 Is the Better Value Option?
Investors with an interest in Transportation - Truck stocks have likely encountered both 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.
Both Knight-Swift Transportation Holdings and Saia have a Zacks Rank of # 1 (Strong 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 just one factor that value investors are interested in.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
KNX currently has a forward P/E ratio of 12.74, while SAIA has a forward P/E of 37.19. We also note that KNX has a PEG ratio of 0.85. 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 1.05.
Another notable valuation metric for KNX is its P/B ratio of 1.52. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SAIA has a P/B of 7.89.
These are just a few of the metrics contributing to KNX's Value grade of B and SAIA's Value grade of F.
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.