XPO Logistics vs GXO Logistics Which Is Stronger?

XPO Logistics and GXO Logistics were once part of the same parent company before a spin-off in August 2021. XPO focused on transportation and logistics services while GXO specializes in warehousing and distribution. Both companies have seen strong growth in the wake of the COVID-19 pandemic as e-commerce continues to surge. Investors looking to capitalize on the boom in supply chain management may find value in either XPO or GXO stocks, but it's essential to carefully evaluate each company's financials and growth prospects before making any investment decisions.

XPO Logistics or GXO Logistics?

When comparing XPO Logistics and GXO 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 XPO Logistics and GXO 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. XPO Logistics has a dividend yield of -%, while GXO Logistics has a dividend yield of -%. 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, GXO 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 XPO Logistics P/E ratio at 49.59 and GXO Logistics's P/E ratio at 54.55. 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 11.18 while GXO Logistics's P/B ratio is 1.88.

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 GXO Logistics's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with XPO Logistics's ROE at 25.79% and GXO Logistics's ROE at 3.63%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $155.04 for XPO Logistics and $48.75 for GXO Logistics. Over the past year, XPO Logistics's prices ranged from $80.26 to $159.43, with a yearly change of 98.64%. GXO Logistics's prices fluctuated between $46.07 and $63.33, with a yearly change of 37.46%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.