RXO (NYSE:RXO) and TFI International (NYSE:TFII) Financial Contrast

RXO (NYSE:RXO) and TFI International (NYSE:TFII) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Insider & Institutional Ownership

92.7% of RXO shares are held by institutional investors. Comparatively, 73.3% of TFI International shares are held by institutional investors. 0.8% of RXO shares are held by insiders. Comparatively, 5.5% of TFI International shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for RXO and TFI International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RXO	4	9	6	0	2.11
TFI International	0	4	14	1	2.84

RXO presently has a consensus price target of $23.91, suggesting a potential upside of 22.91%. TFI International has a consensus price target of $175.76, suggesting a potential upside of 34.08%. Given TFI International’s stronger consensus rating and higher possible upside, analysts plainly believe TFI International is more favorable than RXO.

Profitability

This table compares RXO and TFI International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RXO	-1.72%	-0.98%	-0.45%
TFI International	4.14%	14.87%	5.38%

Valuation & Earnings

This table compares RXO and TFI International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RXO	$5.74 billion	0.56	-$100.00 million	($0.61)	-31.89
TFI International	$7.88 billion	1.37	$310.55 million	$4.07	32.21

TFI International has higher revenue and earnings than RXO. RXO is trading at a lower price-to-earnings ratio than TFI International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

RXO has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, TFI International has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Summary

TFI International beats RXO on 13 of the 15 factors compared between the two stocks.

About RXO

RXO, Inc. provides full truckload freight transportation brokering services. It also offers brokered services for managed transportation, last mile, and freight forwarding. The company was incorporated in 2022 and is based in Charlotte, North Carolina.

About TFI International

TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States and Canada. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items in North America. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank, container, and dedicated services. This segment also carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2023, it operates 11,455 trucks, 34,599 trailers, and 7,504 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. was founded in 1957 and is headquartered in Saint-Laurent, Canada.