Analyzing RXO (NYSE:RXO) and TFI International (NYSE:TFII)

TFI International (NYSE:TFII) and RXO (NYSE:RXO) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Profitability

This table compares TFI International and RXO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TFI International	4.14%	14.87%	5.38%
RXO	-1.72%	-0.98%	-0.45%

Valuation and Earnings

This table compares TFI International and RXO”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TFI International	$7.88 billion	1.43	$310.55 million	$4.07	33.71
RXO	$5.74 billion	0.59	-$100.00 million	($0.61)	-33.87

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for TFI International and RXO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFI International	0	4	14	1	2.84
RXO	4	10	5	0	2.05

TFI International currently has a consensus price target of $175.76, suggesting a potential upside of 28.13%. RXO has a consensus price target of $23.85, suggesting a potential upside of 15.45%. Given TFI International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe TFI International is more favorable than RXO.

Volatility & Risk

TFI International has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, RXO has a beta of 2.1, meaning that its share price is 110% more volatile than the S&P 500.

Institutional and Insider Ownership

73.3% of TFI International shares are held by institutional investors. Comparatively, 92.7% of RXO shares are held by institutional investors. 5.5% of TFI International shares are held by insiders. Comparatively, 0.8% of RXO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

TFI International beats RXO on 13 of the 15 factors compared between the two stocks.

About TFI International

TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States and Canada. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items in North America. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank, container, and dedicated services. This segment also carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2023, it operates 11,455 trucks, 34,599 trailers, and 7,504 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. was founded in 1957 and is headquartered in Saint-Laurent, Canada.

About RXO

RXO, Inc. provides full truckload freight transportation brokering services. It also offers brokered services for managed transportation, last mile, and freight forwarding. The company was incorporated in 2022 and is based in Charlotte, North Carolina.