Knight-Swift Transportation Holdings (SWFT) versus Genesee & Wyoming (GWR) Critical Review
Knight-Swift Transportation Holdings (NYSE: SWFT) and Genesee & Wyoming (NYSE:GWR) are both mid-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.
Insider and Institutional Ownership
74.9% of Knight-Swift Transportation Holdings shares are held by institutional investors. Comparatively, 95.9% of Genesee & Wyoming shares are held by institutional investors. 44.9% of Knight-Swift Transportation Holdings shares are held by company insiders. Comparatively, 3.5% of Genesee & Wyoming shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Knight-Swift Transportation Holdings and Genesee & Wyoming, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Knight-Swift Transportation Holdings||0||5||9||0||2.64|
|Genesee & Wyoming||0||5||3||0||2.38|
Knight-Swift Transportation Holdings presently has a consensus target price of $28.45, indicating a potential downside of 3.51%. Genesee & Wyoming has a consensus target price of $77.60, indicating a potential upside of 8.11%. Given Genesee & Wyoming’s higher probable upside, analysts plainly believe Genesee & Wyoming is more favorable than Knight-Swift Transportation Holdings.
This table compares Knight-Swift Transportation Holdings and Genesee & Wyoming’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Knight-Swift Transportation Holdings||2.65%||15.10%||4.04%|
|Genesee & Wyoming||6.10%||5.80%||2.45%|
Earnings and Valuation
This table compares Knight-Swift Transportation Holdings and Genesee & Wyoming’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Knight-Swift Transportation Holdings||$4.01 billion||0.98||$480.95 million||$0.90||32.77|
|Genesee & Wyoming||$2.08 billion||2.15||$615.42 million||$2.11||34.02|
Genesee & Wyoming has higher revenue, but lower earnings than Knight-Swift Transportation Holdings. Knight-Swift Transportation Holdings is trading at a lower price-to-earnings ratio than Genesee & Wyoming, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Knight-Swift Transportation Holdings has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500. Comparatively, Genesee & Wyoming has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.
Knight-Swift Transportation Holdings beats Genesee & Wyoming on 8 of the 14 factors compared between the two stocks.
Knight-Swift Transportation Holdings 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.
Genesee & Wyoming Company Profile
Genesee & Wyoming Inc. owns and operates freight railroads across the world. As of December 31, 2016, the Company owned or leased 122 freight railroads worldwide that are organized in 10 operating regions. The Company operates through three segments, which include North American Operations, Australian Operations and U.K./European Operations. In North America, the Company has operations in eight regions, such as Central, Coastal (which includes industrial switching and port operations), Midwest, Mountain West (which includes industrial switching operations), Northeast, Pacific, Southern and Canada. Outside the United States, the Company has operations in two regions: Australia and the United Kingdom/Europe (which consists of operations in the United Kingdom, Belgium, Germany, the Netherlands and Poland, as well as the provision of management and technical support through Freightliner to Saudi Arabia Railway Company).
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