Comparing RXO (RXO) and Its Competitors

RXO (NYSE:RXO) is one of 35 public companies in the “Transportation services” industry, but how does it weigh in compared to its peers? We will compare RXO to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, risk, profitability and dividends.

Insider and Institutional Ownership

92.7% of RXO shares are held by institutional investors. Comparatively, 59.7% of shares of all “Transportation services” companies are held by institutional investors. 1.5% of RXO shares are held by company insiders. Comparatively, 15.0% of shares of all “Transportation services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for RXO and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RXO	1	12	5	0	2.22
RXO Competitors	109	934	1840	32	2.62

RXO presently has a consensus target price of $21.50, suggesting a potential upside of 22.23%. As a group, “Transportation services” companies have a potential upside of 2.53%. Given RXO’s higher probable upside, equities analysts clearly believe RXO is more favorable than its peers.

Profitability

This table compares RXO and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RXO	0.28%	9.50%	3.37%
RXO Competitors	-2,584.27%	11.07%	-3.62%

Valuation and Earnings

This table compares RXO and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
RXO	$4.80 billion	$92.00 million	159.92
RXO Competitors	$3.78 billion	$228.37 million	28.99

RXO has higher revenue, but lower earnings than its peers. RXO is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

RXO Company Profile

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