Financial Review: FTAI Infrastructure (NASDAQ:FIP) and XPO (NYSE:XPO)

XPO (NYSE:XPO) and FTAI Infrastructure (NASDAQ:FIP) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

97.7% of XPO shares are held by institutional investors. Comparatively, 87.4% of FTAI Infrastructure shares are held by institutional investors. 0.9% of XPO shares are held by company insiders. Comparatively, 2.6% of FTAI Infrastructure shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for XPO and FTAI Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPO	1	4	19	2	2.85
FTAI Infrastructure	1	0	5	0	2.67

XPO currently has a consensus target price of $221.45, suggesting a potential upside of 17.46%. FTAI Infrastructure has a consensus target price of $9.75, suggesting a potential upside of 130.50%. Given FTAI Infrastructure’s higher possible upside, analysts clearly believe FTAI Infrastructure is more favorable than XPO.

Valuation & Earnings

This table compares XPO and FTAI Infrastructure”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPO	$8.16 billion	2.69	$316.00 million	$4.24	44.47
FTAI Infrastructure	$502.52 million	0.99	-$107.17 million	($5.08)	-0.83

XPO has higher revenue and earnings than FTAI Infrastructure. FTAI Infrastructure is trading at a lower price-to-earnings ratio than XPO, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares XPO and FTAI Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPO	5.69%	32.80%	7.60%
FTAI Infrastructure	-64.75%	N/A	-8.35%

Risk & Volatility

XPO has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, FTAI Infrastructure has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Summary

XPO beats FTAI Infrastructure on 12 of the 14 factors compared between the two stocks.

About XPO

XPO Inc. is a transportation company focused on less-than-truckload (LTL) shipping in North America. Its network combines freight from multiple customers into shared truckloads, serving businesses that need to ship goods too large for parcel delivery but not large enough to fill an entire trailer. The company provides pickup and delivery, linehaul transportation between service centers, and related freight-handling services. Its operations primarily serve customers in the United States, with cross-border coverage in Canada and Mexico.

About FTAI Infrastructure

FTAI Infrastructure (NASDAQ: FIP) is an infrastructure company focused on owning and operating assets in the transportation and energy sectors. Its businesses provide facilities and services that support the storage, handling and movement of commodities and other industrial products. The company’s portfolio includes Jefferson Terminal, a multimodal logistics and storage facility in Beaumont, Texas, and Repauno, a deepwater port and industrial site in Gibbstown, New Jersey. These facilities connect customers to transportation networks such as rail, road and waterways.