Financial Contrast: Knight-Swift Transportation (SWFT) versus AMERCO (UHAL)

Knight-Swift Transportation (NYSE: SWFT) and AMERCO (NASDAQ:UHAL) are both mid-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility and Risk

Knight-Swift Transportation has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500. Comparatively, AMERCO has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

74.9% of Knight-Swift Transportation shares are held by institutional investors. Comparatively, 30.7% of AMERCO shares are held by institutional investors. 44.9% of Knight-Swift Transportation shares are held by insiders. Comparatively, 42.6% of AMERCO shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Knight-Swift Transportation and AMERCO, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Knight-Swift Transportation 0 4 7 0 2.64
AMERCO 0 0 0 0 N/A

Knight-Swift Transportation presently has a consensus price target of $28.00, indicating a potential downside of 5.05%. Given Knight-Swift Transportation’s higher possible upside, equities research analysts clearly believe Knight-Swift Transportation is more favorable than AMERCO.

Valuation and Earnings

This table compares Knight-Swift Transportation and AMERCO’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Knight-Swift Transportation N/A N/A N/A $0.79 37.33
AMERCO $3.42 billion 2.18 $398.42 million $16.62 22.90

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.

Profitability

This table compares Knight-Swift Transportation and AMERCO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Knight-Swift Transportation 0.81% 0.56% 0.33%
AMERCO 9.30% 11.28% 3.38%

Summary

Knight-Swift Transportation beats AMERCO on 6 of the 11 factors compared between the two stocks.

Knight-Swift Transportation Company Profile

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.

AMERCO Company Profile

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.

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