Australia markets open in 3 hours 37 minutes
  • ALL ORDS

    7,689.70
    +15.50 (+0.20%)
     
  • AUD/USD

    0.7418
    -0.0002 (-0.03%)
     
  • ASX 200

    7,381.10
    +19.10 (+0.26%)
     
  • OIL

    82.44
    +0.16 (+0.19%)
     
  • GOLD

    1,766.50
    -1.80 (-0.10%)
     
  • BTC-AUD

    82,684.74
    +243.42 (+0.30%)
     
  • CMC Crypto 200

    1,430.79
    -20.85 (-1.44%)
     

KNX vs. ODFL: Which Stock Is the Better Value Option?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors interested in Transportation - Truck stocks are likely familiar with Knight-Swift Transportation Holdings (KNX) and Old Dominion Freight Line (ODFL). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Knight-Swift Transportation Holdings has a Zacks Rank of #2 (Buy), while Old Dominion Freight Line has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KNX has an improving earnings outlook. But this is only part of the picture for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

KNX currently has a forward P/E ratio of 13.02, while ODFL has a forward P/E of 34.13. We also note that KNX has a PEG ratio of 0.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ODFL currently has a PEG ratio of 1.50.

Another notable valuation metric for KNX is its P/B ratio of 1.41. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ODFL has a P/B of 9.84.

These are just a few of the metrics contributing to KNX's Value grade of B and ODFL's Value grade of D.

KNX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KNX is likely the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
KnightSwift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
 
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting