GXO Logistics vs XPO Logistics Which Is Stronger?

GXO Logistics and XPO Logistics are two prominent players in the logistics industry, with both companies offering a range of transportation and supply chain management services. As separate entities following the spin-off of GXO from XPO in 2021, investors are evaluating their respective stocks for potential growth and profitability. While XPO continues to operate as a diversified logistics provider, GXO focuses specifically on contract logistics and warehousing. Both stocks offer unique investment opportunities in a sector poised for continued growth and innovation.

GXO Logistics or XPO Logistics?

When comparing GXO Logistics 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 GXO Logistics 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. GXO Logistics has a dividend yield of -%, while XPO Logistics has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. GXO Logistics reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 GXO Logistics P/E ratio at 54.16 and XPO Logistics's P/E ratio at 49.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. GXO Logistics P/B ratio is 1.87 while XPO Logistics's P/B ratio is 11.05.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, GXO Logistics has seen a 5-year revenue growth of 0.55%, while XPO Logistics's is -0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with GXO Logistics's ROE at 3.63% and XPO Logistics's ROE at 25.79%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $48.01 for GXO Logistics and $155.83 for XPO Logistics. Over the past year, GXO Logistics's prices ranged from $46.07 to $63.33, with a yearly change of 37.46%. XPO Logistics's prices fluctuated between $80.26 and $159.43, with a yearly change of 98.64%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.