XPO Logistics (NYSE: XPO) and Expedia (NASDAQ:EXPE) are both large-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.
Volatility & Risk
XPO Logistics has a beta of 2.42, meaning that its share price is 142% more volatile than the S&P 500. Comparatively, Expedia has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.
This table compares XPO Logistics and Expedia’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|XPO Logistics||$15.38 billion||0.76||$340.20 million||$1.95||50.10|
|Expedia||$10.06 billion||1.63||$377.96 million||$3.72||29.01|
Expedia has lower revenue, but higher earnings than XPO Logistics. Expedia is trading at a lower price-to-earnings ratio than XPO Logistics, indicating that it is currently the more affordable of the two stocks.
This table compares XPO Logistics and Expedia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
80.2% of Expedia shares are held by institutional investors. 15.8% of XPO Logistics shares are held by company insiders. Comparatively, 21.0% of Expedia shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Expedia pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. XPO Logistics does not pay a dividend. Expedia pays out 32.3% of its earnings in the form of a dividend.
This is a summary of current ratings and target prices for XPO Logistics and Expedia, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
XPO Logistics presently has a consensus price target of $95.65, indicating a potential downside of 2.09%. Expedia has a consensus price target of $144.83, indicating a potential upside of 34.22%. Given Expedia’s higher probable upside, analysts clearly believe Expedia is more favorable than XPO Logistics.
Expedia beats XPO Logistics on 11 of the 16 factors compared between the two stocks.
About XPO Logistics
XPO Logistics, Inc. is a global provider of supply chain solutions. The Company operates in two segments: Transportation and Logistics. The Transportation segment provides freight brokerage, last mile, less-than-truckload (LTL), full truckload and global forwarding services. The Logistics segment provides a range of contract logistics services, including highly engineered and customized solutions, value-added warehousing and distribution, cold chain solutions and other inventory solutions. Its freight brokerage operations encompass truck brokerage globally, as well as intermodal, drayage and expedite services in North America. In Logistics segment, it provides warehousing and distribution solutions, such as factory support, aftermarket support, integrated manufacturing, packaging, labeling and transportation. As of December 31, 2016, the Company had more than 10,000 independent owner operators under contract to provide drayage, expedite, last mile and LTL services to its customers.
Expedia, Inc. is an online travel company. The Company operates through four segments: Core Online Travel Agencies (Core OTA), trivago, Egencia and HomeAway. The Company’s Core OTA segment provides a range of travel and advertising services to its customers across the world, through a range of brands, including Expedia.com and Hotels.com in the United States, and localized Expedia and Hotels.com Websites throughout the world, Orbitz.com, Expedia Affiliate Network, Hotwire.com, Travelocity, Wotif Group, CarRentals.com and Classic Vacations. The Company’s trivago segment sends referrals to online travel companies and travel service providers from its hotel metasearch Websites. Its Egencia segment, which also includes Orbitz Worldwide (Orbitz) for Business, provides managed travel services to corporate customers across the world. The Company’s HomeAway segment operates an online marketplace for the vacation rental industry.
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