Reviewing Knight Transportation (KNX) and Hennessy Capital Acquisition Corp. II (DSKE)

Knight Transportation (NYSE: KNX) and Hennessy Capital Acquisition Corp. II (NASDAQ:DSKE) are both transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for Knight Transportation and Hennessy Capital Acquisition Corp. II, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Knight Transportation 1 4 8 0 2.54
Hennessy Capital Acquisition Corp. II 0 0 4 0 3.00

Knight Transportation presently has a consensus target price of $37.62, indicating a potential upside of 1.12%. Hennessy Capital Acquisition Corp. II has a consensus target price of $13.67, indicating a potential upside of 10.22%. Given Hennessy Capital Acquisition Corp. II’s stronger consensus rating and higher possible upside, analysts clearly believe Hennessy Capital Acquisition Corp. II is more favorable than Knight Transportation.

Risk and Volatility

Knight Transportation has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Hennessy Capital Acquisition Corp. II has a beta of -0.1, suggesting that its stock price is 110% less volatile than the S&P 500.

Profitability

This table compares Knight Transportation and Hennessy Capital Acquisition Corp. II’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Knight Transportation 7.03% 10.39% 7.61%
Hennessy Capital Acquisition Corp. II N/A -24.73% -3.71%

Valuation and Earnings

This table compares Knight Transportation and Hennessy Capital Acquisition Corp. II’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Knight Transportation $1.11 billion 2.70 $243.34 million $0.96 38.75
Hennessy Capital Acquisition Corp. II $682.32 million 0.69 $72.93 million N/A N/A

Knight Transportation has higher revenue and earnings than Hennessy Capital Acquisition Corp. II.

Insider and Institutional Ownership

89.3% of Knight Transportation shares are owned by institutional investors. Comparatively, 17.6% of Hennessy Capital Acquisition Corp. II shares are owned by institutional investors. 9.9% of Knight Transportation shares are owned by insiders. Comparatively, 20.0% of Hennessy Capital Acquisition Corp. II shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Knight Transportation pays an annual dividend of $0.24 per share and has a dividend yield of 0.6%. Hennessy Capital Acquisition Corp. II does not pay a dividend. Knight Transportation pays out 25.0% of its earnings in the form of a dividend. Hennessy Capital Acquisition Corp. II has increased its dividend for 3 consecutive years.

Summary

Knight Transportation beats Hennessy Capital Acquisition Corp. II on 10 of the 15 factors compared between the two stocks.

Knight Transportation Company Profile

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.

Hennessy Capital Acquisition Corp. II Company Profile

Daseke, Inc. is a consolidator of the open deck freight market in North America. The Company provides open deck transportation and logistics. It operates through two segments: Flatbed Solutions and Specialized Solutions. The Flatbed Solutions segment focuses on delivering transportation and logistics solutions that principally require the use of flatbed and retractable-sided transportation equipment. The Specialized Solutions segment focuses on delivering transportation and logistics solutions that principally include heavy haul, high-value customized, over-dimensional, step deck and removable gooseneck trailer solutions. As of July 5, 2017, the Company had a fleet of over 3,600 trucks and 7,500 open deck specialized trailers. The Company serves customers in the United States, Canada and Mexico.

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