WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Knight Transportation Inc generates 27% more annual revenue ($7.73B vs $6.09B). KNX leads profitability with a 0.6% profit margin vs -1.7%. KNX appears more attractively valued with a PEG of 0.29. KNX earns a higher WallStSmart Score of 63/100 (C+).

KNX

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 4.5Value: 7.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.86

RXO

Hold

44

out of 100

Grade: D

Growth: 5.3Profit: 2.5Value: 3.0Quality: 6.5
Piotroski: 5/9Altman Z: 2.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KNXUndervalued (+49.1%)

Margin of Safety

+49.1%

Fair Value

$135.28

Current Price

$67.97

$67.31 discount

UndervaluedFair: $135.28Overvalued
RXOSignificantly Overvalued (-33.1%)

Margin of Safety

-33.1%

Fair Value

$12.27

Current Price

$19.49

$7.22 premium

UndervaluedFair: $12.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KNX3 strengths · Avg: 8.7/10
PEG RatioValuation
0.2910/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
23.8%8/10

Earnings expanding 23.8% YoY

RXO2 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
25.0%8/10

Revenue surging 25.0% year-over-year

Areas to Watch

KNX4 concerns · Avg: 3.0/10
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
0.6%3/10

0.6% margin — thin

P/E RatioValuation
262.2x2/10

Premium valuation, high expectations priced in

RXO4 concerns · Avg: 2.3/10
Operating MarginProfitability
0.7%3/10

Operating margin of 0.7%

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

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, EPS Growth. Revenue growth of 12.6% demonstrates continued momentum. PEG of 0.29 suggests the stock is reasonably priced for its growth.

Bull Case : RXO

The strongest argument for RXO centers on Price/Book, Revenue Growth. Revenue growth of 25.0% demonstrates continued momentum.

Bear Case : KNX

The primary concerns for KNX are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 262.2x leaves little room for execution misses. Thin 0.6% margins leave little buffer for downturns.

Bear Case : RXO

The primary concerns for RXO are Operating Margin, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

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

RXO carries more volatility with a beta of 1.99 — expect wider price swings.

RXO is growing revenue faster at 25.0% — sustainability is the question.

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

Bottom Line

KNX scores higher overall (63/100 vs 44/100) and 12.6% revenue growth. Both earn "Buy" and "Hold" 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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