KNX vs. SAIA: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Truck sector have probably already heard of Knight-Swift Transportation Holdings (KNX) and Saia (SAIA). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KNX currently has a forward P/E ratio of 14.19, while SAIA has a forward P/E of 33.34. We also note that KNX has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAIA currently has a PEG ratio of 1.44.
Another notable valuation metric for KNX is its P/B ratio of 1.36. 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 6.10.
These are just a few of the metrics contributing to KNX's Value grade of B and SAIA's Value grade of D.
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.
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KnightSwift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
Saia, Inc. (SAIA) : Free Stock Analysis Report
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