Booking (NASDAQ:BKNG) and XPO Logistics (NYSE:XPO) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
91.8% of Booking shares are owned by institutional investors. Comparatively, 95.9% of XPO Logistics shares are owned by institutional investors. 0.3% of Booking shares are owned by company insiders. Comparatively, 18.9% of XPO Logistics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations for Booking and XPO Logistics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Booking | 1 | 19 | 11 | 0 | 2.32 |
XPO Logistics | 0 | 3 | 16 | 0 | 2.84 |
Booking presently has a consensus price target of $1,930.6207, suggesting a potential downside of 8.90%. XPO Logistics has a consensus price target of $119.9524, suggesting a potential upside of 0.92%. Given XPO Logistics' stronger consensus rating and higher possible upside, analysts clearly believe XPO Logistics is more favorable than Booking.
Profitability
This table compares Booking and XPO Logistics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Booking | 15.68% | 25.72% | 5.84% |
XPO Logistics | 0.82% | 9.11% | 1.73% |
Earnings & Valuation
This table compares Booking and XPO Logistics' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Booking | $15.07 billion | 5.76 | $4.87 billion | $102.57 | 20.66 |
XPO Logistics | $16.65 billion | 0.65 | $419 million | $4.03 | 29.49 |
Booking has higher earnings, but lower revenue than XPO Logistics. Booking is trading at a lower price-to-earnings ratio than XPO Logistics, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Booking has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, XPO Logistics has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500.
Summary
XPO Logistics beats Booking on 8 of the 14 factors compared between the two stocks.