GXO Logistics (NYSE:GXO) versus FedEx (NYSE:FDX) Head-To-Head Survey

GXO Logistics (NYSE:GXO) and FedEx (NYSE:FDX) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

GXO Logistics has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, FedEx has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares GXO Logistics and FedEx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GXO Logistics	0.61%	10.49%	2.75%
FedEx	4.65%	16.34%	5.14%

Valuation and Earnings

This table compares GXO Logistics and FedEx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GXO Logistics	$12.23 billion	0.48	$134.00 million	$0.62	83.22
FedEx	$87.93 billion	0.62	$4.09 billion	$16.88	13.55

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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for GXO Logistics and FedEx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GXO Logistics	0	4	10	0	2.71
FedEx	2	9	18	1	2.60

GXO Logistics currently has a consensus price target of $57.43, indicating a potential upside of 11.30%. FedEx has a consensus price target of $283.25, indicating a potential upside of 23.81%. Given FedEx’s higher probable upside, analysts clearly believe FedEx is more favorable than GXO Logistics.

Insider & Institutional Ownership

90.7% of GXO Logistics shares are held by institutional investors. Comparatively, 84.5% of FedEx shares are held by institutional investors. 2.3% of GXO Logistics shares are held by company insiders. Comparatively, 8.9% of FedEx 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.

Summary

FedEx beats GXO Logistics on 11 of the 15 factors compared between the two stocks.

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.

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.