Knight-Swift Transportation (NYSE:KNX) vs. Grab (NASDAQ:GRAB) Financial Analysis

Grab (NASDAQ:GRAB) and Knight-Swift Transportation (NYSE:KNX) are both large-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Grab has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Knight-Swift Transportation has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grab	15.97%	8.83%	4.92%
Knight-Swift Transportation	0.56%	3.51%	2.04%

Insider & Institutional Ownership

55.5% of Grab shares are owned by institutional investors. Comparatively, 88.8% of Knight-Swift Transportation shares are owned by institutional investors. 3.6% of Grab shares are owned by insiders. Comparatively, 2.9% 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 is poised for long-term growth.

Earnings & Valuation

This table compares Grab and Knight-Swift Transportation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grab	$3.37 billion	3.71	$268.00 million	$0.06	50.83
Knight-Swift Transportation	$7.47 billion	1.48	$65.95 million	$0.26	260.58

Grab has higher earnings, but lower revenue than Knight-Swift Transportation. Grab 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Grab and Knight-Swift Transportation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grab	1	1	8	1	2.82
Knight-Swift Transportation	0	3	16	2	2.95

Grab presently has a consensus price target of $6.01, indicating a potential upside of 96.90%. Knight-Swift Transportation has a consensus price target of $84.26, indicating a potential upside of 24.37%. Given Grab’s higher possible upside, equities research analysts clearly believe Grab is more favorable than Knight-Swift Transportation.

Summary

Knight-Swift Transportation beats Grab on 8 of the 15 factors compared between the two stocks.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.

About Knight-Swift Transportation

Knight-Swift Transportation Holdings Inc., together with its subsidiaries, provides freight transportation services in the United States and Mexico. The company operates through four segments: Truckload, Less-than-truckload (LTL), Logistics, and Intermodal. The Truckload segment provides transportation services, which include irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. This segment operated an average of 20,948 tractors, which comprised 18,821 company tractors and 2,127 independent contractor tractors, as well as 87,865 trailers. The LTL segment provides regional LTL transportation services through a network of approximately 120 service centers; and offers national coverage through partner carrier outside the network. This segment operated an average of 3,201 tractors and 8,482 trailers. The Logistic segment offers brokerage and other freight management services through third-party transportation providers and equipment. The Intermodal segment offers transportation services, including freight through third-party intermodal rail services on trailing equipment, such as containers and trailers on flat cars; and drayage services. This segment operated an average of 639 tractors and 12,730 intermodal containers. The company also provides repair and maintenance shop, equipment leasing, warranty, and insurance services; and warehousing and driving academy services, as well as manufactures trailer parts. It serves retail, food and beverage, consumer and paper products, transportation and logistics, housing, and building, automotive, and manufacturing industries. Knight-Swift Transportation Holdings Inc. was incorporated in 1989 and is headquartered in Phoenix, Arizona.