DHL Group (OTCMKTS:DHLGY – Get Free Report) and RXO (NYSE:RXO – Get Free Report) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares DHL Group and RXO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DHL Group | 4.11% | 14.92% | 4.98% |
| RXO | -5.45% | 1.18% | 0.57% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for DHL Group and RXO, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DHL Group | 1 | 3 | 1 | 1 | 2.33 |
| RXO | 2 | 12 | 3 | 0 | 2.06 |
Institutional and Insider Ownership
92.7% of RXO shares are owned by institutional investors. 2.8% of RXO shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares DHL Group and RXO”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DHL Group | $91.11 billion | 0.61 | $3.61 billion | $3.24 | 14.27 |
| RXO | $5.56 billion | 0.51 | -$290.00 million | ($2.16) | -7.99 |
DHL Group has higher revenue and earnings than RXO. RXO is trading at a lower price-to-earnings ratio than DHL Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
DHL Group has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, RXO has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.
Summary
DHL Group beats RXO on 10 of the 15 factors compared between the two stocks.
About DHL Group
Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.
About RXO
RXO, Inc. provides full truckload freight transportation brokering services. It also offers brokered services for managed transportation, last mile, and freight forwarding. The company was incorporated in 2022 and is based in Charlotte, North Carolina.
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