Analyzing GXO Logistics (NYSE:GXO) and Freightos (NASDAQ:CRGO)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for GXO Logistics and Freightos, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GXO Logistics	0	2	13	0	2.87
Freightos	1	0	1	0	2.00

GXO Logistics presently has a consensus price target of $63.29, suggesting a potential upside of 35.81%. Freightos has a consensus price target of $3.00, suggesting a potential upside of 284.12%. Given Freightos’ higher possible upside, analysts plainly believe Freightos is more favorable than GXO Logistics.

Insider and Institutional Ownership

90.7% of GXO Logistics shares are owned by institutional investors. Comparatively, 22.7% of Freightos shares are owned by institutional investors. 0.2% of GXO Logistics shares are owned by insiders. Comparatively, 19.6% of Freightos shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GXO Logistics	0.96%	10.57%	2.61%
Freightos	-56.24%	-41.63%	-27.70%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GXO Logistics	$13.18 billion	0.41	$32.00 million	$1.13	41.24
Freightos	$29.46 million	1.36	-$17.52 million	($0.33)	-2.37

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

Risk & Volatility

GXO Logistics has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Freightos has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Summary

GXO Logistics beats Freightos on 10 of the 13 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 Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.