Getlink (OTCMKTS:GRPTF) versus Knight-Swift Transportation (NYSE:KNX) Critical Survey

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

Dividends

Knight-Swift Transportation pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Getlink pays an annual dividend of $0.15 per share and has a dividend yield of 0.7%. Knight-Swift Transportation pays out 307.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Getlink pays out 74.6% of its earnings in the form of a dividend. Knight-Swift Transportation has increased its dividend for 6 consecutive years. Knight-Swift Transportation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Knight-Swift Transportation and Getlink, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knight-Swift Transportation	0	3	15	2	2.95
Getlink	0	2	2	0	2.50

Knight-Swift Transportation presently has a consensus target price of $84.44, suggesting a potential upside of 20.36%. Given Knight-Swift Transportation’s stronger consensus rating and higher possible upside, equities analysts clearly believe Knight-Swift Transportation is more favorable than Getlink.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Knight-Swift Transportation	0.56%	3.51%	2.04%
Getlink	N/A	N/A	N/A

Valuation and Earnings

This table compares Knight-Swift Transportation and Getlink”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Knight-Swift Transportation	$7.73 billion	1.47	$65.95 million	$0.26	269.85
Getlink	N/A	N/A	N/A	$0.20	102.82

Knight-Swift Transportation has higher revenue and earnings than Getlink. Getlink 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.

Insider & Institutional Ownership

88.8% of Knight-Swift Transportation shares are owned by institutional investors. Comparatively, 33.1% of Getlink shares are owned by institutional investors. 2.9% of Knight-Swift Transportation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Knight-Swift Transportation beats Getlink on 14 of the 15 factors compared between the two stocks.

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.

About Getlink

Getlink SE engages in the design, finance, construction, and operation of fixed link infrastructure and transport system in France. The company operates through Eurotunnel, Europorte, and ElecLink segments. The Eurotunnel segment operates three tunnels of a length of approximately 50 kilometres each under the English Channel, as well as two terminals at Folkestone in the United Kingdom and the Coquelles in France. It also provides passenger shuttle services for the transport of trucks, cars, motor homes, coaches, and other vehicles. In addition, this segment manages high-speed passenger trains and rail freights, as well as fixed equipment and related installations. The Europorte segment offers a range of integrated rail freight services, including national and international haulage, local services for secondary lines, individual junction management, infrastructure maintenance, and wagon loading and unloading services. The ElecLink segment engages in the construction and operation of a 1 gigawatt electricity interconnector between the France and Great Britain. Getlink SE also engages in third-party retail, telecommunication cables, training activity, and property businesses, as well as the sale of travel insurance products. The company was formerly known as Groupe Eurotunnel S.E. and changed its name to Getlink SE in April 2018. Getlink SE was founded in 1986 and is based in Paris, France.