RXO INC (RXO) vs XPO, Inc. (XPO)

RXO INC and XPO, Inc. are both Trucking companies. XPO, Inc. is the larger, with a market value of $22.1B against $4.8B — 4.6× the size. RXO INC has negative trailing earnings, so its P/E is not meaningful; XPO, Inc. trades at 54.3×. RXO INC grew revenue faster over the last twelve months: 9.53% against 7.05%. XPO, Inc. has the higher net margin (4.71% vs −1.72%) and the higher return on invested capital (9.66% vs −2.39%). Across the 20 metrics below, XPO, Inc. leads on 12 and RXO INC on 8.

Valuation

Metric RXO XPO Trucking median
P/E n/m 54.27 54.27
P/S 0.80 2.55 1.15
P/B 3.22 11.13 1.80
Price to free cash flow n/m 33.60 13.17
EV/EBITDA 177.73 19.26 11.38
EV/Sales 0.88 2.89 1.03
Earnings yield (2.13%) 1.84% 0.21%
Free cash flow yield (1.55%) 2.98% 4.53%

Profitability

Metric RXO XPO Trucking median
Gross margin 14.91% 100.00% 51.20%
Operating margin (1.25%) 8.78% 0.00%
Net margin (1.72%) 4.71% 0.16%
Free cash flow margin (1.23%) 7.58% 5.45%
Return on equity (6.79%) 21.59% 0.31%
Return on assets (3.15%) 4.91% 0.18%
Return on invested capital (2.39%) 9.66% (0.05%)

Growth

Metric RXO XPO Trucking median
Revenue growth (TTM) 9.53% 7.05% 4.46%
EPS growth (last fiscal year) 72.43% (18.27%) (40.10%)
Revenue growth, 5-year CAGR 11.33% 5.75% 6.08%
Net income growth, 5-year CAGR 0.00% 23.50% 0.00%

Health

Metric RXO XPO Trucking median
Debt to equity 0.33 1.63 0.17
Current ratio 1.27 1.01 1.52
Net debt to EBITDA 10.46 2.55 1.59

Dividend

Metric RXO XPO Trucking median
Dividend yield — — 1.20%
Payout ratio — — 0.70

Size

Metric RXO XPO Trucking median
Market cap 4.79b 22.11b 1.53b

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