FedEx Corporation (NYSE: FDX) and XPO Intermodal (NASDAQ:PACR) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.
FedEx Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 0.9%. XPO Intermodal does not pay a dividend. FedEx Corporation pays out 18.9% of its earnings in the form of a dividend. XPO Intermodal has raised its dividend for 7 consecutive years.
This table compares FedEx Corporation and XPO Intermodal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares FedEx Corporation and XPO Intermodal’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FedEx Corporation||$60.95 billion||0.97||$8.25 billion||$10.60||20.76|
FedEx Corporation has higher revenue and earnings than XPO Intermodal.
Insider & Institutional Ownership
75.9% of FedEx Corporation shares are owned by institutional investors. 8.5% of FedEx Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for FedEx Corporation and XPO Intermodal, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FedEx Corporation currently has a consensus price target of $229.11, indicating a potential upside of 4.10%. Given FedEx Corporation’s higher probable upside, analysts clearly believe FedEx Corporation is more favorable than XPO Intermodal.
FedEx Corporation beats XPO Intermodal on 9 of the 11 factors compared between the two stocks.
About FedEx Corporation
FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The Company’s segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services. The FedEx Express segment offers a range of the United States domestic and international shipping services for delivery of packages and freight. TNT Express segment collects, transports and delivers documents, parcels and freight on a day-definite or time-definite basis. The FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services. The FedEx Freight segment offers less-than-truckload (LTL) freight services. The FedEx Services segment provides its other companies with sales, marketing, information technology, communications, customer service and other back-office support.
About XPO Intermodal
Pacer International Inc. (Pacer) is a asset-light transportation and global logistics service provider. The Company provides its transportation services from two operating segments: intermodal and logistics. Intermodal provides intermodal transportation services (the movement of freight through trailer or container using two or more modes of transportation, which include rail and truck segments) principally to beneficial cargo owners (end-user customers), transportation intermediaries and steamship lines who use intermodal transportation. Logistics segment provides highway brokerage, supply chain management services, international freight forwarding, ocean shipping, and warehousing and distribution services to a variety of end-user customers. In April 2014, XPO Logistics Inc acquired the entire share capital of Pacer International Inc. In April 2014, it acquired Pacer International Inc.
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