Knight-Swift Transportation (KNX) & Its Competitors Critical Survey

Knight-Swift Transportation (NYSE: KNX) is one of 15 publicly-traded companies in the “Freight Trucking” industry, but how does it compare to its peers? We will compare Knight-Swift Transportation to similar companies based on the strength of its analyst recommendations, dividends, profitability, risk, institutional ownership, earnings and valuation.

Dividends

Knight-Swift Transportation pays an annual dividend of $0.06 per share and has a dividend yield of 0.1%. Knight-Swift Transportation pays out 6.7% of its earnings in the form of a dividend. As a group, “Freight Trucking” companies pay a dividend yield of 0.5% and pay out 16.9% of their earnings in the form of a dividend. Knight-Swift Transportation has raised its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Knight-Swift Transportation and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Knight-Swift Transportation $4.03 billion $149.26 million 47.25
Knight-Swift Transportation Competitors $1.88 billion $99.34 million 31.39

Knight-Swift Transportation has higher revenue and earnings than its peers. Knight-Swift Transportation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent recommendations for Knight-Swift Transportation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Knight-Swift Transportation 1 4 11 0 2.63
Knight-Swift Transportation Competitors 93 628 584 26 2.41

Knight-Swift Transportation currently has a consensus price target of $40.50, indicating a potential downside of 4.88%. As a group, “Freight Trucking” companies have a potential downside of 1.35%. Given Knight-Swift Transportation’s peers higher probable upside, analysts clearly believe Knight-Swift Transportation has less favorable growth aspects than its peers.

Institutional and Insider Ownership

78.4% of Knight-Swift Transportation shares are owned by institutional investors. Comparatively, 61.6% of shares of all “Freight Trucking” companies are owned by institutional investors. 44.9% of Knight-Swift Transportation shares are owned by company insiders. Comparatively, 30.0% of shares of all “Freight Trucking” companies 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.

Profitability

This table compares Knight-Swift Transportation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Knight-Swift Transportation 2.44% 7.48% 3.31%
Knight-Swift Transportation Competitors 9.29% 9.07% 4.84%

Volatility & Risk

Knight-Swift Transportation has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, Knight-Swift Transportation’s peers have a beta of 1.23, indicating that their average stock price is 23% more volatile than the S&P 500.

Summary

Knight-Swift Transportation beats its peers on 9 of the 15 factors compared.

About Knight-Swift Transportation

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.

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