Knight-Swift Transportation (NYSE:KNX – Get Free Report) and Pamt (NASDAQ:PAMT – Get Free Report) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Institutional and Insider Ownership
88.8% of Knight-Swift Transportation shares are held by institutional investors. Comparatively, 22.1% of Pamt shares are held by institutional investors. 3.0% of Knight-Swift Transportation shares are held by insiders. Comparatively, 27.2% of Pamt shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Knight-Swift Transportation and Pamt’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Knight-Swift Transportation | 1.59% | 2.43% | 1.36% |
Pamt | -4.45% | -2.58% | -1.07% |
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Knight-Swift Transportation | 1 | 6 | 10 | 1 | 2.61 |
Pamt | 0 | 1 | 0 | 0 | 2.00 |
Knight-Swift Transportation presently has a consensus target price of $59.59, suggesting a potential upside of 23.82%. Pamt has a consensus target price of $16.50, suggesting a potential upside of 30.64%. Given Pamt’s higher probable upside, analysts clearly believe Pamt is more favorable than Knight-Swift Transportation.
Risk & Volatility
Knight-Swift Transportation has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Pamt has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
Earnings & Valuation
This table compares Knight-Swift Transportation and Pamt”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Knight-Swift Transportation | $7.41 billion | 1.05 | $117.63 million | $0.73 | 65.92 |
Pamt | $714.65 million | 0.38 | -$31.80 million | ($1.46) | -8.65 |
Knight-Swift Transportation has higher revenue and earnings than Pamt. Pamt 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.
Summary
Knight-Swift Transportation beats Pamt on 12 of the 15 factors compared between the two stocks.
About Knight-Swift Transportation
Knight-Swift Transportation Holdings Inc., together with its subsidiaries, provides freight transportation services in the United States and Mexico. The company operates through four segments: Truckload, Less-than-truckload (LTL), Logistics, and Intermodal. The Truckload segment provides transportation services, which include irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. This segment operated an average of 20,948 tractors, which comprised 18,821 company tractors and 2,127 independent contractor tractors, as well as 87,865 trailers. The LTL segment provides regional LTL transportation services through a network of approximately 120 service centers; and offers national coverage through partner carrier outside the network. This segment operated an average of 3,201 tractors and 8,482 trailers. The Logistic segment offers brokerage and other freight management services through third-party transportation providers and equipment. The Intermodal segment offers transportation services, including freight through third-party intermodal rail services on trailing equipment, such as containers and trailers on flat cars; and drayage services. This segment operated an average of 639 tractors and 12,730 intermodal containers. The company also provides repair and maintenance shop, equipment leasing, warranty, and insurance services; and warehousing and driving academy services, as well as manufactures trailer parts. It serves retail, food and beverage, consumer and paper products, transportation and logistics, housing, and building, automotive, and manufacturing industries. Knight-Swift Transportation Holdings Inc. was incorporated in 1989 and is headquartered in Phoenix, Arizona.
About Pamt
PAMT Corp. is a holding company, which engages in the provision of truckload and logistics services through its subsidiaries. Its freight consists primarily of automotive parts, expedited goods, consumer goods, such as general retail store merchandise, and manufactured goods, such as heating and air conditioning units. The company was founded in June 1986 and is headquartered in Tontitown, AR.
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