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

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for FedEx and GXO Logistics, as provided by MarketBeat.com.

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

FedEx presently has a consensus target price of $283.25, suggesting a potential upside of 21.11%. GXO Logistics has a consensus target price of $57.43, suggesting a potential upside of 10.17%. Given FedEx’s higher probable upside, analysts plainly believe FedEx is more favorable than GXO Logistics.

Profitability

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

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

Earnings and Valuation

This table compares FedEx and GXO Logistics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FedEx	$87.93 billion	0.64	$4.09 billion	$16.88	13.85
GXO Logistics	$11.71 billion	0.51	$134.00 million	$0.62	84.08

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.

Volatility and Risk

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

Insider & Institutional Ownership

84.5% of FedEx shares are held by institutional investors. Comparatively, 90.7% of GXO Logistics shares are held by institutional investors. 8.9% of FedEx shares are held by insiders. Comparatively, 2.3% of GXO Logistics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments 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 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.

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.