Comparing GXO Logistics (NYSE:GXO) & Freightos (NASDAQ:CRGO)

Freightos (NASDAQ:CRGO) and GXO Logistics (NYSE:GXO) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Volatility & Risk

Freightos has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, GXO Logistics has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Profitability

This table compares Freightos and GXO Logistics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freightos	-56.24%	-41.63%	-27.70%
GXO Logistics	0.96%	10.57%	2.61%

Insider & Institutional Ownership

22.7% of Freightos shares are held by institutional investors. Comparatively, 90.7% of GXO Logistics shares are held by institutional investors. 19.6% of Freightos shares are held by company insiders. Comparatively, 0.2% of GXO Logistics shares are held by company 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.

Earnings and Valuation

This table compares Freightos and GXO Logistics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freightos	$29.46 million	1.45	-$17.52 million	($0.33)	-2.52
GXO Logistics	$13.18 billion	0.40	$32.00 million	$1.13	41.02

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Freightos and GXO Logistics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightos	1	0	1	0	2.00
GXO Logistics	0	3	12	0	2.80

Freightos currently has a consensus target price of $3.00, suggesting a potential upside of 261.40%. GXO Logistics has a consensus target price of $63.79, suggesting a potential upside of 37.60%. Given Freightos’ higher probable upside, analysts plainly believe Freightos is more favorable than GXO Logistics.

Summary

GXO Logistics beats Freightos on 11 of the 14 factors compared between the two stocks.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.

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.