Knight-Swift Transportation (NYSE: KNX) and USA Truck (NASDAQ:USAK) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

78.2% of Knight-Swift Transportation shares are held by institutional investors. Comparatively, 64.3% of USA Truck shares are held by institutional investors. 44.9% of Knight-Swift Transportation shares are held by company insiders. Comparatively, 3.5% of USA Truck shares are held 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.

Earnings and Valuation

This table compares Knight-Swift Transportation and USA Truck’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Knight-Swift Transportation $4.03 billion 1.93 $149.26 million $0.90 48.55
USA Truck $429.10 million 0.35 -$7.69 million ($1.39) -13.12

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Knight-Swift Transportation and USA Truck, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Knight-Swift Transportation 1 4 12 0 2.65
USA Truck 0 1 2 0 2.67

Knight-Swift Transportation currently has a consensus target price of $41.07, indicating a potential downside of 6.12%. USA Truck has a consensus target price of $10.75, indicating a potential downside of 41.03%. Given Knight-Swift Transportation’s higher possible upside, research analysts clearly believe Knight-Swift Transportation is more favorable than USA Truck.

Volatility and Risk

Knight-Swift Transportation has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500. Comparatively, USA Truck has a beta of 2.56, meaning that its stock price is 156% more volatile than the S&P 500.

Dividends

Knight-Swift Transportation pays an annual dividend of $0.06 per share and has a dividend yield of 0.1%. USA Truck does not pay a dividend. Knight-Swift Transportation pays out 6.7% of its earnings in the form of a dividend. Knight-Swift Transportation has increased its dividend for 3 consecutive years.

Profitability

This table compares Knight-Swift Transportation and USA Truck’s 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%
USA Truck -2.61% -19.57% -3.85%

Summary

Knight-Swift Transportation beats USA Truck on 13 of the 16 factors compared between the two stocks.

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.

About USA Truck

USA Truck, Inc. is a truckload carrier providing transportation of general commodities throughout the continental United States and into and out of portions of Mexico and Canada. The Company operates through two segments: Trucking and Strategic Capacity Solutions (SCS). The Trucking segment consists of truckload and dedicated freight services. The SCS segment consists of freight brokerage and rail intermodal services. The Company transports full dry van trailer loads of freight from origin to destination without intermediate stops or handling. The Company offers a range of truckload and logistics services to a customer base that spans a range of industries. The Company’s fleet of approximately 1,832 tractors consists of 1,568 company tractors and 264 independent contractor tractors. The Company owns approximately 6,200 trailers. The Company also transports general commodities into and out of Mexico by allowing through-trailer service from its terminal in Laredo, Texas.

Receive News & Ratings for Knight-Swift Transportation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Knight-Swift Transportation and related companies with MarketBeat.com's FREE daily email newsletter.