Comparing XPO (XPO) and Its Competitors

XPO (NYSE:XPO) is one of 100 public companies in the “Ground Transportation” industry, but how does it contrast to its rivals? We will compare XPO to similar companies based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

Institutional and Insider Ownership

97.7% of XPO shares are owned by institutional investors. Comparatively, 59.5% of shares of all “Ground Transportation” companies are owned by institutional investors. 0.9% of XPO shares are owned by company insiders. Comparatively, 15.2% of shares of all “Ground Transportation” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for XPO and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPO	1	4	19	2	2.85
XPO Competitors	1360	6510	8660	265	2.47

XPO currently has a consensus price target of $221.45, suggesting a potential upside of 17.75%. As a group, “Ground Transportation” companies have a potential upside of 14.48%. Given XPO’s stronger consensus rating and higher possible upside, analysts clearly believe XPO is more favorable than its rivals.

Earnings and Valuation

This table compares XPO and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
XPO	$8.16 billion	$316.00 million	44.36
XPO Competitors	$8.76 billion	$911.04 million	8.52

XPO’s rivals have higher revenue and earnings than XPO. XPO is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

XPO has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, XPO’s rivals have a beta of 1.14, indicating that their average stock price is 14% more volatile than the S&P 500.

Profitability

This table compares XPO and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPO	5.69%	32.80%	7.60%
XPO Competitors	7.26%	13.08%	4.23%

Summary

XPO beats its rivals on 9 of the 13 factors compared.

XPO Company Profile

XPO, Inc. provides freight transportation services in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. The company operates in two segments, North American LTL and European Transportation. The North American LTL segment provides customers with less-than-truckload (LTL) services, such as geographic density and day-definite domestic services. This segment also offers cross-border U.S., Mexico, Canada, and the Caribbean, as well as engages in the operation of trailer manufacturing. The European Transportation segment offers dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, such as road-rail and road-short sea combinations. It provides its services to customers in various industries, such as industrial and manufacturing, retail and e-commerce, food and beverage, logistics and transportation, and consumer goods. The company was formerly known as XPO Logistics, Inc. and changed its name to XPO, Inc. in December 2022. XPO, Inc. was incorporated in 2000 and is based in Greenwich, Connecticut.