Reviewing Schneider National (NYSE:SNDR) and RXO (NYSE:RXO)

RXO (NYSE:RXO) and Schneider National (NYSE:SNDR) are both mid-cap transportation companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Volatility and Risk

RXO has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Schneider National has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RXO and Schneider National, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RXO	4	11	4	0	2.00
Schneider National	1	8	7	1	2.47

RXO currently has a consensus price target of $16.14, indicating a potential upside of 3.87%. Schneider National has a consensus price target of $28.80, indicating a potential downside of 5.06%. Given RXO’s higher probable upside, equities research analysts plainly believe RXO is more favorable than Schneider National.

Insider and Institutional Ownership

92.7% of RXO shares are held by institutional investors. Comparatively, 28.5% of Schneider National shares are held by institutional investors. 2.8% of RXO shares are held by insiders. Comparatively, 32.7% of Schneider National 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.

Profitability

This table compares RXO and Schneider National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RXO	-1.25%	0.88%	0.43%
Schneider National	2.03%	4.04%	2.44%

Earnings and Valuation

This table compares RXO and Schneider National”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RXO	$4.55 billion	0.56	-$290.00 million	($0.43)	-36.14
Schneider National	$5.29 billion	1.01	$117.00 million	$0.64	47.40

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

Summary

Schneider National beats RXO on 12 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 Schneider National

Schneider National, Inc., together with its subsidiaries, provides surface transportation and logistics solutions in the United States, Canada, and Mexico. It operates through three segments: Truckload, Intermodal, and Logistics. The Truckload segment offers over the road freight transportation services primarily through dry van, bulk, temperature-controlled, and flat-bed trailers across either network or dedicated configurations. The Intermodal segment provides door-to-door container on flat car services through a combination of rail and dray transportation using company-owned containers, chassis, and trucks. The Logistics segment offers asset-light freight brokerage, supply chain, warehousing, and import/export services to manage and move its customers' freight. The company leases equipment, such as trucks to owner-operators; and provides insurance for the company drivers and owner-operators. Schneider National, Inc. was founded in 1935 and is headquartered in Green Bay, Wisconsin.