AMERCO (NASDAQ: UHAL) and Knight-Swift Transportation (NYSE:SWFT) are both mid-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
This table compares AMERCO and Knight-Swift Transportation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
30.7% of AMERCO shares are owned by institutional investors. Comparatively, 74.9% of Knight-Swift Transportation shares are owned by institutional investors. 42.6% of AMERCO shares are owned by insiders. Comparatively, 44.9% of Knight-Swift Transportation shares are owned by 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 AMERCO and Knight-Swift Transportation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AMERCO||$3.42 billion||2.14||$398.42 million||$16.62||22.47|
AMERCO has higher revenue and earnings than Knight-Swift Transportation. AMERCO 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.
This is a summary of current ratings and target prices for AMERCO and Knight-Swift Transportation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Knight-Swift Transportation has a consensus target price of $28.00, suggesting a potential downside of 5.05%. Given Knight-Swift Transportation’s higher probable upside, analysts clearly believe Knight-Swift Transportation is more favorable than AMERCO.
Volatility and Risk
AMERCO has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Knight-Swift Transportation has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500.
Knight-Swift Transportation beats AMERCO on 6 of the 11 factors compared between the two stocks.
AMERCO is a do-it-yourself moving and storage operator through its subsidiary, U-Haul International, Inc. (U-Haul). The Company supplies its products and services to help people move and store their household and commercial goods through U-Haul. It sells U-Haul brand boxes, tape, and other moving and self-storage products and services to do-it-yourself moving and storage customers at its distribution outlets and through uhaul.com and eMove Websites. The Company operates through three segments: Moving and Storage; Property and Casualty Insurance, and Life Insurance. The Moving and Storage segment includes the operations of AMERCO, U-Haul and Amerco Real Estate Company, and the subsidiaries of U-Haul and Real Estate. The Property and Casualty Insurance segment consists of the operations of Repwest Insurance Company and its subsidiaries, and ARCOA Risk Retention Group. The Life Insurance segment consists of the operations of Oxford Life Insurance Company and its subsidiaries.
About Knight-Swift Transportation
Knight-Swift Transportation Holdings Inc., formerly Swift Transportation Company, provides truckload services in North America. The Company also provides rail intermodal and non-asset based freight brokerage and logistics management services. The Company provides its services across United States, Mexico and Canada using its dry van, refrigerated, flatbed and specialized trailers, and intermodal containers. As of September 10, 2017, the Company had a fleet of approximately 23,000 tractors and 77,000 trailers. It operates through its Knight Transportation, Swift Transportation, and Barr-Nunn branded subsidiaries.
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