XPO Logistics (NYSE: XPO) 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.
Insider and Institutional Ownership
21.5% of Schneider National shares are held by institutional investors. 15.8% of XPO Logistics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of recent ratings and recommmendations for XPO Logistics and Schneider National, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
XPO Logistics currently has a consensus price target of $77.94, indicating a potential upside of 2.51%. Schneider National has a consensus price target of $24.50, indicating a potential downside of 8.03%. Given XPO Logistics’ stronger consensus rating and higher probable upside, equities research analysts plainly believe XPO Logistics is more favorable than Schneider National.
Valuation & Earnings
This table compares XPO Logistics and Schneider National’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|XPO Logistics||$14.62 billion||0.62||$69.00 million||$1.20||63.36|
|Schneider National||$4.05 billion||1.16||$156.85 million||$0.88||30.27|
Schneider National has lower revenue, but higher earnings than XPO Logistics. Schneider National 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 Schneider National’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Schneider National pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. XPO Logistics does not pay a dividend. Schneider National pays out 22.7% of its earnings in the form of a dividend.
XPO Logistics beats Schneider National on 8 of the 15 factors compared between the two stocks.
XPO Logistics Company Profile
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.
Schneider National Company Profile
Schneider National, Inc. is a provider of transportation, logistics and related services. The Company’s transportation solutions include one-way, intermodal, dedicated, bulk, transport management, trans loading services, international services and Schneider payment services. Its supply chain management and consulting services include logistics solution design, global supply chain services, enterprise and market entry assistance, and sourcing and compliance. Schneider Logistics is the subsidiary of the Company, which provides supply chain management technology, managed services, engineering services and freight payment. The Company operates approximately 10,000 tractors, around 28,800 trailers and around 14,300 containers. It has operations in around 36 locations in Canada, the United States and Mexico.
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