Schneider National (NYSE: SNDR) and Knight-Swift Transportation (NYSE:KNX) are both mid-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Volatility and Risk
Schneider National has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Knight-Swift Transportation has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500.
Valuation and Earnings
This table compares Schneider National and Knight-Swift Transportation’s revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Knight-Swift Transportation has lower revenue, but higher earnings than Schneider National. Knight-Swift Transportation is trading at a lower price-to-earnings ratio than Schneider National, indicating that it is currently the more affordable of the two stocks.
This table compares Schneider National and Knight-Swift Transportation’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Insider & Institutional Ownership
25.5% of Schneider National shares are owned by institutional investors. Comparatively, 80.3% of Knight-Swift Transportation shares are owned by institutional investors. 43.5% of Schneider National shares are owned by company insiders. Comparatively, 27.5% of Knight-Swift Transportation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and target prices for Schneider National and Knight-Swift Transportation, as provided by MarketBeat.com.
||Strong Buy Ratings
Schneider National presently has a consensus target price of $31.43, indicating a potential upside of 13.30%. Knight-Swift Transportation has a consensus target price of $52.24, indicating a potential upside of 32.78%. Given Knight-Swift Transportation’s higher possible upside, analysts plainly believe Knight-Swift Transportation is more favorable than Schneider National.
Schneider National pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. Knight-Swift Transportation pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. Schneider National pays out 25.5% of its earnings in the form of a dividend. Knight-Swift Transportation pays out 17.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Knight-Swift Transportation has increased its dividend for 4 consecutive years.
Knight-Swift Transportation beats Schneider National on 10 of the 16 factors compared between the two stocks.
Schneider National Company Profile
Schneider National, Inc., a transportation and logistics services company, provides truckload, intermodal, and logistics solutions in North America. Its Truckload segment provides standard long-haul and regional shipping services through dry van equipment; and bulk, temperature-controlled, final mile delivery, and customized solutions for time-sensitive loads. This segment engages in shipping furniture, mattresses, and other household goods. The company's intermodal segment offers door-to-door container on flat car services, including rail and over-the-road transportation through containers, chassis, and trucks. Its logistics segment provides non-asset freight brokerage, supply chain, and import/export services; value-added services to manage and move its customers' freight; and trans-loading and warehousing services. Schneider National, Inc. also leases equipment, such as trucks to owner-operators; and provides insurance for the company and owner-operators. The company was founded in 1935 and is headquartered in Green Bay, Wisconsin.
Knight-Swift Transportation Company Profile
Knight-Swift Transportation Holdings Inc., together with its subsidiaries, provides truckload transportation and logistics services in the United States, Mexico, and Canada. The company operates through six segments: Knight Trucking, Knight Logistics, Swift Truckload, Swift Dedicated, Swift Refrigerated, and Swift Intermodal. Its trucking services include dry van, refrigerated, dedicated, drayage, flatbed, and cross-border transportation of various products, goods, and materials. The company also provides logistics, freight brokerage and intermodal, freight management, and sourcing, solutions, as well as other non-trucking services, such as used equipment sales and leasing to independent contractors and third-parties. As of December 31, 2017, it had a fleet of 18,381 company-owned tractors; 4,688 independent contractor tractors; 74,949 trailers; and 9,122 intermodal containers. It serves retail, food and beverage, consumer products, paper products, transportation and logistics, housing and building, automotive, and manufacturing industries. Knight-Swift Transportation Holdings Inc. was founded in 1989 and is headquartered in Phoenix, Arizona.
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