XPO Logistics vs FedEx

XPO Logistics and FedEx are two giants in the logistics and transportation industry, each with their own strengths and weaknesses. XPO Logistics has seen significant growth in recent years, with a diverse range of services and a strong focus on technology and innovation. On the other hand, FedEx has a long history of success and a global network that is hard to rival. Both companies have their unique value proposition, making them an interesting comparison for investors looking to capitalize on the booming logistics sector.

XPO Logistics or FedEx?

When comparing XPO Logistics and FedEx, 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 XPO Logistics and FedEx.

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. XPO Logistics has a dividend yield of -%, while FedEx has a dividend yield of 1.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. XPO Logistics reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%.

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 XPO Logistics P/E ratio at 37.28 and FedEx's P/E ratio at 16.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. XPO Logistics P/B ratio is 8.93 while FedEx's P/B ratio is 2.42.

Growth Investors:

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

Retail Investors:

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