The shares of Knight Transportation, Inc. (NYSE:KNX) and Enphase Energy, Inc. (NASDAQ:ENPH) were among the active stocks of the last trading sessions. Knight Transportation, Inc. (NYSE:KNX) soared to 0.16% closing at the price of $32.16 whereas the shares of Enphase Energy, Inc. (NASDAQ:ENPH) soared 2.66% with the increase of 0.12 points closing at the price of $4.63. Knight Transportation, Inc. has currently decrease -26.07% in its stock over the period of 6-months while its rival Enphase Energy, Inc. added 15.75% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Knight Transportation, Inc. (NYSE:KNX) is 2.1% while the ROI of Enphase Energy, Inc. (NASDAQ:ENPH) is -12.5%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, KNX’s EBITDA Margin is 8.75 whereas ENPH’s is 180.48.
Both the profitability ratios suggest a mixed sentiment for Knight Transportation, Inc. (NYSE:KNX) and Enphase Energy, Inc. (NASDAQ:ENPH).
EPS & Surprise Factor
Knight Transportation, Inc. (NYSE:KNX) reported $0.56/share EPS for the previous quarter where analysts were predicting an EPS to be $0.57/share Thus lagging the analyst Estimates with a Surprise Factor of -1.8 Percent. While, Enphase Energy, Inc. (NASDAQ:ENPH) reported EPS of $0.02/share in the last quarter. The analysts projected EPS of $0.01/share depicting a Surprise of 100 Percent.
Taking a look at Earnings per Share, Enphase Energy, Inc. tends to be beating the analyst estimates more than Knight Transportation, Inc.. so ENPH is more profitable than KNX.
Technical Analysis of Knight Transportation, Inc. & Enphase Energy, Inc.
Moving average convergence divergence (MACD) shows that Knight Transportation, Inc. (NYSE:KNX) is on a PRICE RELATIVITY trend While Enphase Energy, Inc. (NASDAQ:ENPH) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Knight Transportation, Inc. was in BEARISH territory and Enphase Energy, Inc. was in BEARISH territory.
KNX’s current statistics gauge that the stock candle is BEARISH with HIGH volatility. While ENPH’s candle is BULLISH with LOW.
EPS Growth Rate: KNX’s 27.16% versus ENPH’s 0%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Knight Transportation, Inc. (NYSE:KNX) is predicted at 27.16% while Enphase Energy, Inc. (NASDAQ:ENPH) stands at 0%. These numbers suggest that KNX is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of KNX stands at 1.5 while ENPH is at 1.4 whereas the debt ratio of the prior is 0.16 while the debt ratio of the later is 0.
The values of the both ratios suggest that KNX is more suitable investment when the liquidity and risk is the main concern.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 1.9 for KNX and 2 for ENPH which means KNX has Buy rating whereas ENPH has Buy rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for KNX is $45.35 which is 29.08% of its current price while ENPH has price target of 7.46 which is 37.94% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
KNX currently has price to earning P/E ratio of 22.94 whereas ENPH has 24.63 while the forward P/E ratio for the prior stands at 11.98 and for the later it depicts the value of 16.08.
The price to Book P/B for KNX is 1.06, Price to Sale is at 1.31 and for ENPH these ratios stand at 0 and 1.52.