XPO Logistics (NYSE:XPO) and Expeditors International of Washington (NASDAQ:EXPD) are both large-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.
Analyst Recommendations
This is a summary of recent recommendations and price targets for XPO Logistics and Expeditors International of Washington, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| XPO Logistics | 0 | 3 | 17 | 0 | 2.85 |
| Expeditors International of Washington | 4 | 3 | 0 | 0 | 1.43 |
XPO Logistics currently has a consensus price target of $126.1364, suggesting a potential upside of 5.41%. Expeditors International of Washington has a consensus price target of $83.3333, suggesting a potential downside of 11.11%. Given XPO Logistics' stronger consensus rating and higher probable upside, equities research analysts plainly believe XPO Logistics is more favorable than Expeditors International of Washington.
Insider & Institutional Ownership
95.9% of XPO Logistics shares are owned by institutional investors. Comparatively, 91.2% of Expeditors International of Washington shares are owned by institutional investors. 18.9% of XPO Logistics shares are owned by company insiders. Comparatively, 1.2% of Expeditors International of Washington shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk & Volatility
XPO Logistics has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500. Comparatively, Expeditors International of Washington has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
Profitability
This table compares XPO Logistics and Expeditors International of Washington's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| XPO Logistics | 0.82% | 9.11% | 1.73% |
| Expeditors International of Washington | 7.06% | 28.55% | 16.53% |
Earnings and Valuation
This table compares XPO Logistics and Expeditors International of Washington's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| XPO Logistics | $16.65 billion | 0.73 | $419 million | $4.03 | 29.69 |
| Expeditors International of Washington | $8.18 billion | 1.94 | $590.40 million | $3.45 | 27.17 |
Expeditors International of Washington has lower revenue, but higher earnings than XPO Logistics. Expeditors International of Washington is trading at a lower price-to-earnings ratio than XPO Logistics, indicating that it is currently the more affordable of the two stocks.
Summary
XPO Logistics beats Expeditors International of Washington on 9 of the 14 factors compared between the two stocks.
