FedEx vs XPO Logistics

FedEx and XPO Logistics are two prominent players in the global transportation and logistics industry, with both companies experiencing growth and success in recent years. Investors are closely monitoring the performance of their stocks to make informed decisions about where to allocate their capital. FedEx, a well-established logistics giant, faces competition from XPO Logistics, a rapidly growing company known for its innovative solutions and strong customer focus. It will be interesting to see how these two stocks compare in terms of financial performance, market share, and future growth potential.

FedEx or XPO Logistics?

When comparing FedEx and XPO Logistics, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between FedEx and XPO Logistics.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. FedEx has a dividend yield of 1.99%, while XPO Logistics has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%. On the other hand, XPO Logistics reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with FedEx P/E ratio at 16.23 and XPO Logistics's P/E ratio at 37.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FedEx P/B ratio is 2.42 while XPO Logistics's P/B ratio is 8.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, FedEx has seen a 5-year revenue growth of 0.45%, while XPO Logistics's is -0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FedEx's ROE at 15.00% and XPO Logistics's ROE at 27.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $265.66 for FedEx and $115.16 for XPO Logistics. Over the past year, FedEx's prices ranged from $224.69 to $313.84, with a yearly change of 39.68%. XPO Logistics's prices fluctuated between $65.80 and $130.51, with a yearly change of 98.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.