Critical Comparison: Roadrunner Transportation Systems (OTCMKTS:RRTS) & XPO (NYSE:XPO)

Roadrunner Transportation Systems (OTCMKTS:RRTS) and XPO (NYSE:XPO) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

0.0% of Roadrunner Transportation Systems shares are held by institutional investors. Comparatively, 97.7% of XPO shares are held by institutional investors. 0.7% of Roadrunner Transportation Systems shares are held by insiders. Comparatively, 2.9% of XPO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Roadrunner Transportation Systems and XPO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roadrunner Transportation Systems	$32.72 million	2.93	-$2.09 million	N/A	N/A
XPO	$8.07 billion	1.88	$387.00 million	$2.89	44.56

XPO has higher revenue and earnings than Roadrunner Transportation Systems.

Profitability

This table compares Roadrunner Transportation Systems and XPO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Roadrunner Transportation Systems	N/A	N/A	N/A
XPO	4.32%	26.48%	5.57%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Roadrunner Transportation Systems and XPO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roadrunner Transportation Systems	0	0	0	0	0.00
XPO	1	0	19	0	2.90

XPO has a consensus price target of $138.00, suggesting a potential upside of 7.17%. Given XPO’s stronger consensus rating and higher possible upside, analysts plainly believe XPO is more favorable than Roadrunner Transportation Systems.

Volatility and Risk

Roadrunner Transportation Systems has a beta of 3.79, suggesting that its stock price is 279% more volatile than the S&P 500. Comparatively, XPO has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.

Summary

XPO beats Roadrunner Transportation Systems on 10 of the 12 factors compared between the two stocks.

About Roadrunner Transportation Systems

Roadrunner Transportation Systems, Inc. provides asset-right transportation and asset-light logistics services. It operates through four segments: Ascent Transportation Management (Ascent TM), Ascent On-Demand (Ascent OD), Less-than-Truckload (LTL), and Truckload (TL). The company offers domestic freight management solutions, including asset-backed truckload brokerage, specialized/heavy haul, LTL shipment execution, LTL carrier rate negotiations, access to its transportation management system, and freight audit/payment. It also provides air and ground expedite services for the transportation of automotive and industrial parts, paper products, and steel, as well as frozen and refrigerated foods, including dairy, poultry and meat, and consumers products, such as foods and beverages. In addition, the company arranges the pickup and delivery of TL freight through its 30 TL service centers in the United States; offers dry van truckload, temperature-controlled truckload, and logistics and warehouse services; and provides pickup, consolidation, linehaul, deconsolidation, and delivery of LTL shipments in the United States and Canada through 27 LTL service centers and approximately 140 third-party delivery agents. Further, the company provides international air and ocean freight forwarding, customs brokerage, regulatory compliance, project and order management, and retail consolidation services. It operates through a network of independent brokerage agents, direct sales force, company brokers, and commissioned sales representatives. The company offers its services under the Roadrunner and Ascent Global Logistics brands. Roadrunner Transportation Systems, Inc. was incorporated in 2005 and is headquartered in Downers Grove, Illinois.

About XPO

XPO, Inc. provides freight transportation services in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. The company operates in two segments, North American LTL and European Transportation. The North American LTL segment provides customers with less-than-truckload (LTL) services, such as geographic density and day-definite domestic services. This segment also offers cross-border U.S., Mexico, Canada, and the Caribbean, as well as engages in the operation of trailer manufacturing. The European Transportation segment offers dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, such as road-rail and road-short sea combinations. It provides its services to customers in various industries, such as industrial and manufacturing, retail and e-commerce, food and beverage, logistics and transportation, and consumer goods. The company was formerly known as XPO Logistics, Inc. and changed its name to XPO, Inc. in December 2022. XPO, Inc. was incorporated in 2000 and is based in Greenwich, Connecticut.