Head-To-Head Comparison: Firstgroup (OTCMKTS:FGROY) & RXO (NYSE:RXO)

Firstgroup (OTCMKTS:FGROY) and RXO (NYSE:RXO) are both transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for Firstgroup and RXO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Firstgroup	0	0	0	0	0.00
RXO	2	12	3	0	2.06

RXO has a consensus target price of $17.46, suggesting a potential downside of 0.49%. Given RXO’s stronger consensus rating and higher possible upside, analysts plainly believe RXO is more favorable than Firstgroup.

Earnings & Valuation

This table compares Firstgroup and RXO”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Firstgroup	$6.46 billion	0.27	$162.68 million	N/A	N/A
RXO	$4.55 billion	0.63	-$290.00 million	($2.16)	-8.12

Firstgroup has higher revenue and earnings than RXO.

Volatility & Risk

Firstgroup has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, RXO has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Institutional & Insider Ownership

92.7% of RXO shares are owned by institutional investors. 0.2% of Firstgroup shares are owned by company insiders. Comparatively, 2.8% of RXO shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Firstgroup and RXO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Firstgroup	N/A	N/A	N/A
RXO	-5.45%	1.18%	0.57%

Summary

RXO beats Firstgroup on 9 of the 12 factors compared between the two stocks.

About Firstgroup

FirstGroup plc provides public transport services in the United Kingdom. The company operates through First Bus and First Rail segments. The First Bus segment offers local bus services with a fleet of approximately 4,800 buses in the United Kingdom. The First Rail segment operates a passenger rail network that provides long-distance, commuter, regional, and sleeper services through a portfolio of Great Western Railway, South Western Railway, and Avanti West Coast franchises; and hull trains and Lumos. FirstGroup plc was founded in 1986 and is based in London, the United Kingdom.

About RXO

RXO, Inc. provides full truckload freight transportation brokering services. It also offers brokered services for managed transportation, last mile, and freight forwarding. The company was incorporated in 2022 and is based in Charlotte, North Carolina.