FedEx (NYSE:FDX – Get Free Report) and GXO Logistics (NYSE:GXO – Get Free Report) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Analyst Ratings
This is a summary of current ratings and target prices for FedEx and GXO Logistics, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
FedEx | 2 | 9 | 18 | 1 | 2.60 |
GXO Logistics | 0 | 5 | 9 | 0 | 2.64 |
FedEx currently has a consensus price target of $285.75, indicating a potential upside of 28.68%. GXO Logistics has a consensus price target of $53.86, indicating a potential upside of 12.46%. Given FedEx’s higher possible upside, equities analysts clearly believe FedEx is more favorable than GXO Logistics.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
FedEx | $87.93 billion | 0.61 | $4.33 billion | $15.94 | 13.93 |
GXO Logistics | $11.71 billion | 0.47 | $134.00 million | $0.62 | 77.24 |
FedEx has higher revenue and earnings than GXO Logistics. FedEx is trading at a lower price-to-earnings ratio than GXO Logistics, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
84.5% of FedEx shares are held by institutional investors. Comparatively, 90.7% of GXO Logistics shares are held by institutional investors. 8.9% of FedEx shares are held by insiders. Comparatively, 2.3% of GXO Logistics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares FedEx and GXO Logistics’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
FedEx | 4.65% | 16.54% | 5.17% |
GXO Logistics | 0.61% | 10.49% | 2.75% |
Volatility and Risk
FedEx has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, GXO Logistics has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.
Summary
FedEx beats GXO Logistics on 11 of the 15 factors compared between the two stocks.
About FedEx
FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services. The FedEx Ground segment provides small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight transportation services. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. In addition, the company offers supply chain management solutions; and air and ocean cargo transportation, specialty transportation, customs brokerage, and trade management tools and data. The company was founded in 1971 and is headquartered in Memphis, Tennessee.
About GXO Logistics
GXO Logistics, Inc., together with its subsidiaries, provides logistics services worldwide. The company provides warehousing and distribution, order fulfilment, e-commerce, reverse logistics, and other supply chain services. As of December 31, 2023, it operated in approximately 974 facilities. The company serves various customers in the e-commerce, omnichannel retail, technology and consumer electronics, food and beverage, industrial and manufacturing, consumer packaged goods, and others. GXO Logistics, Inc. was incorporated in 2021 and is headquartered in Greenwich, Connecticut.
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