Reviewing GXO Logistics (NYSE:GXO) & United Parcel Service (NYSE:UPS)

GXO Logistics (NYSE:GXO) and United Parcel Service (NYSE:UPS) are both transportation companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Valuation & Earnings

This table compares GXO Logistics and United Parcel Service”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GXO Logistics	$11.71 billion	0.48	$134.00 million	$0.62	79.39
United Parcel Service	$91.07 billion	0.93	$5.78 billion	$6.86	14.64

United Parcel Service has higher revenue and earnings than GXO Logistics. United Parcel Service is trading at a lower price-to-earnings ratio than GXO Logistics, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

GXO Logistics has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500. Comparatively, United Parcel Service has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for GXO Logistics and United Parcel Service, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GXO Logistics	0	5	9	0	2.64
United Parcel Service	2	12	11	1	2.42

GXO Logistics currently has a consensus target price of $54.93, suggesting a potential upside of 11.60%. United Parcel Service has a consensus target price of $120.26, suggesting a potential upside of 19.75%. Given United Parcel Service’s higher possible upside, analysts clearly believe United Parcel Service is more favorable than GXO Logistics.

Institutional and Insider Ownership

90.7% of GXO Logistics shares are held by institutional investors. Comparatively, 60.3% of United Parcel Service shares are held by institutional investors. 2.3% of GXO Logistics shares are held by company insiders. Comparatively, 0.1% of United Parcel Service shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares GXO Logistics and United Parcel Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GXO Logistics	0.61%	10.49%	2.75%
United Parcel Service	6.44%	40.15%	9.65%

Summary

United Parcel Service beats GXO Logistics on 10 of the 15 factors compared between the two stocks.

About GXO Logistics

GXO Logistics, Inc., together with its subsidiaries, provides logistics services worldwide. The company provides warehousing and distribution, order fulfilment, e-commerce, reverse logistics, and other supply chain services. As of December 31, 2023, it operated in approximately 974 facilities. The company serves various customers in the e-commerce, omnichannel retail, technology and consumer electronics, food and beverage, industrial and manufacturing, consumer packaged goods, and others. GXO Logistics, Inc. was incorporated in 2021 and is headquartered in Greenwich, Connecticut.

About United Parcel Service

United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services comprising guaranteed time-definite express options in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The company also offers international air and ocean freight forwarding, post-sales, and mail and consulting services. In addition, it provides truckload and customs brokerage services; supply chain solutions to the healthcare and life sciences industries; fulfillment and transportation management services; and integrated supply chain and shipment insurance solutions. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.