WallStSmart

Knight Transportation Inc (KNX)vsRXO Inc. (RXO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Knight Transportation Inc generates 31% more annual revenue ($7.50B vs $5.73B). KNX leads profitability with a 0.5% profit margin vs -1.8%. KNX appears more attractively valued with a PEG of 0.64. KNX earns a higher WallStSmart Score of 50/100 (C-).

KNX

Buy

50

out of 100

Grade: C-

Growth: 3.3Profit: 4.0Value: 6.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.86

RXO

Avoid

32

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 3.0Quality: 6.5
Piotroski: 5/9Altman Z: 2.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KNXUndervalued (+47.0%)

Margin of Safety

+47.0%

Fair Value

$132.50

Current Price

$69.80

$62.70 discount

UndervaluedFair: $132.50Overvalued
RXOSignificantly Overvalued (-41.1%)

Margin of Safety

-41.1%

Fair Value

$11.57

Current Price

$22.32

$10.75 premium

UndervaluedFair: $11.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KNX2 strengths · Avg: 8.0/10
PEG RatioValuation
0.648/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

RXO1 strengths · Avg: 8.0/10
Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

KNX4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
1.4%4/10

1.4% revenue growth

Altman Z-ScoreHealth
1.864/10

Grey zone — moderate risk

Return on EquityProfitability
0.6%3/10

ROE of 0.6% — below average capital efficiency

Profit MarginProfitability
0.5%3/10

0.5% margin — thin

RXO4 concerns · Avg: 2.0/10
PEG RatioValuation
172.132/10

Expensive relative to growth rate

Return on EquityProfitability
-7.0%2/10

ROE of -7.0% — below average capital efficiency

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

EPS GrowthGrowth
-93.2%2/10

Earnings declined 93.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : KNX

The strongest argument for KNX centers on PEG Ratio, Price/Book. PEG of 0.64 suggests the stock is reasonably priced for its growth.

Bull Case : RXO

The strongest argument for RXO centers on Price/Book.

Bear Case : KNX

The primary concerns for KNX are Revenue Growth, Altman Z-Score, Return on Equity. A P/E of 365.1x leaves little room for execution misses. Thin 0.5% margins leave little buffer for downturns.

Bear Case : RXO

The primary concerns for RXO are PEG Ratio, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

KNX profiles as a value stock while RXO is a turnaround play — different risk/reward profiles.

RXO carries more volatility with a beta of 1.92 — expect wider price swings.

KNX is growing revenue faster at 1.4% — sustainability is the question.

KNX generates stronger free cash flow (57M), providing more financial flexibility.

Bottom Line

KNX scores higher overall (50/100 vs 32/100). Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Knight Transportation Inc

INDUSTRIALS · TRUCKING · USA

Knight-Swift Transportation Holdings Inc., provides truck cargo transportation services in the United States, Mexico and Canada. The company is headquartered in Phoenix, Arizona.

RXO Inc.

INDUSTRIALS · TRUCKING · USA

RXO Inc. is a leading entity in the transportation and logistics sector, specializing in advanced freight solutions across North America. Leveraging innovative technology and data analytics, RXO significantly improves supply chain efficiency and cost-effectiveness for a diverse clientele. The company's unwavering focus on sustainability and continuous innovation enhances its operational prowess and competitive stature in a dynamic logistics landscape. With a robust network and strategic alliances, RXO is strategically positioned to meet the evolving needs of the industry, representing a promising opportunity for institutional investors looking for growth in logistics.

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