Comparing XPO (NYSE:XPO) & FTAI Infrastructure (NASDAQ:FIP)

FTAI Infrastructure (NASDAQ:FIP) and XPO (NYSE:XPO) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Insider and Institutional Ownership

87.4% of FTAI Infrastructure shares are held by institutional investors. Comparatively, 97.7% of XPO shares are held by institutional investors. 2.6% of FTAI Infrastructure shares are held by insiders. Comparatively, 0.9% of XPO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares FTAI Infrastructure and XPO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTAI Infrastructure	-64.75%	N/A	-8.34%
XPO	5.69%	32.80%	7.60%

Valuation and Earnings

This table compares FTAI Infrastructure and XPO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTAI Infrastructure	$502.52 million	0.82	-$107.17 million	($5.19)	-0.67
XPO	$8.16 billion	2.52	$316.00 million	$4.24	41.54

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

Risk & Volatility

FTAI Infrastructure has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, XPO has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for FTAI Infrastructure and XPO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Infrastructure	1	0	5	0	2.67
XPO	1	4	19	2	2.85

FTAI Infrastructure presently has a consensus target price of $9.75, indicating a potential upside of 180.98%. XPO has a consensus target price of $221.45, indicating a potential upside of 25.73%. Given FTAI Infrastructure’s higher possible upside, research analysts clearly believe FTAI Infrastructure is more favorable than XPO.

Summary

XPO beats FTAI Infrastructure on 13 of the 15 factors compared between the two stocks.

About FTAI Infrastructure

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates six freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.

About XPO

XPO, Inc. provides freight transportation services in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. The company operates in two segments, North American LTL and European Transportation. The North American LTL segment provides customers with less-than-truckload (LTL) services, such as geographic density and day-definite domestic services. This segment also offers cross-border U.S., Mexico, Canada, and the Caribbean, as well as engages in the operation of trailer manufacturing. The European Transportation segment offers dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, such as road-rail and road-short sea combinations. It provides its services to customers in various industries, such as industrial and manufacturing, retail and e-commerce, food and beverage, logistics and transportation, and consumer goods. The company was formerly known as XPO Logistics, Inc. and changed its name to XPO, Inc. in December 2022. XPO, Inc. was incorporated in 2000 and is based in Greenwich, Connecticut.