Analyzing Knight-Swift Transportation Holdings (KNX) & P.A.M. Transportation Services (NASDAQ:PTSI)

Knight-Swift Transportation Holdings (NYSE: KNX) and P.A.M. Transportation Services (NASDAQ:PTSI) are both transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Profitability

This table compares Knight-Swift Transportation Holdings and P.A.M. Transportation Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Knight-Swift Transportation Holdings 2.99% 22.23% 5.56%
P.A.M. Transportation Services 1.85% 8.45% 2.17%

Analyst Ratings

This is a summary of current ratings and target prices for Knight-Swift Transportation Holdings and P.A.M. Transportation Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Knight-Swift Transportation Holdings 1 4 10 0 2.60
P.A.M. Transportation Services 0 1 0 0 2.00

Knight-Swift Transportation Holdings currently has a consensus target price of $39.60, suggesting a potential downside of 4.97%. P.A.M. Transportation Services has a consensus target price of $17.00, suggesting a potential downside of 42.63%. Given Knight-Swift Transportation Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Knight-Swift Transportation Holdings is more favorable than P.A.M. Transportation Services.

Volatility & Risk

Knight-Swift Transportation Holdings has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, P.A.M. Transportation Services has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Valuation and Earnings

This table compares Knight-Swift Transportation Holdings and P.A.M. Transportation Services’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Knight-Swift Transportation Holdings $1.11 billion 3.03 $243.34 million $1.25 33.34
P.A.M. Transportation Services $435.80 million 0.43 $52.41 million $1.26 23.52

Knight-Swift Transportation Holdings has higher revenue and earnings than P.A.M. Transportation Services. P.A.M. Transportation Services is trading at a lower price-to-earnings ratio than Knight-Swift Transportation Holdings, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

24.5% of P.A.M. Transportation Services shares are owned by institutional investors. 9.9% of Knight-Swift Transportation Holdings shares are owned by company insiders. Comparatively, 62.0% of P.A.M. Transportation Services shares are owned by company 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.

Summary

Knight-Swift Transportation Holdings beats P.A.M. Transportation Services on 11 of the 14 factors compared between the two stocks.

Knight-Swift Transportation Holdings Company Profile

Knight Transportation, Inc. is a provider of multiple truckload transportation and logistics services, which involve the movement of trailer or container loads of freight from origin to destination for a single customer. The Company operates through two segments: Trucking and Logistics. Its Trucking segment consists of three operating units: dry van truckload, temperature-controlled truckload and drayage services. The Trucking segment provides truckload transportation, including services of various products, goods and materials. Its Logistics segment consists of two operating units: freight brokerage services and rail intermodal. It provides logistics, freight management and other non-trucking services to its customers, through its Logistics segment. It provides a range of truckload and logistics services through its nationwide network of service centers, truckload tractor fleets and its contractual access to third-party capacity providers. It operates primarily in the United States.

P.A.M. Transportation Services Company Profile

P.A.M. Transportation Services, Inc. is a holding company. The Company, through its subsidiaries, operates as a truckload transportation and logistics company. It operates in the motor carrier segment. It operates as a truckload dry van carrier transporting general commodities throughout the continental United States, as well as in certain Canadian provinces. It provides transportation services in Mexico under agreements with Mexican carriers. Its operations are classified into truckload services, or brokerage and logistics services. Truckload services include transportation services, in which it utilizes company owned trucks or independent operator owned trucks for the pickup and delivery of freight. The brokerage and logistics services consist of services, such as transportation scheduling, routing, mode selection, transloading and other services related to the transportation of freight, which may or may not involve the use of company owned or independent operator owned equipment.

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