Reviewing XPO (NYSE:XPO) & Roadrunner Transportation Systems (OTCMKTS:RRTS)

XPO (NYSE:XPO) and Roadrunner Transportation Systems (OTCMKTS:RRTS) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

97.7% of XPO shares are held by institutional investors. Comparatively, 0.0% of Roadrunner Transportation Systems shares are held by institutional investors. 2.9% of XPO shares are held by insiders. Comparatively, 0.7% of Roadrunner Transportation Systems 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.

Valuation & Earnings

This table compares XPO and Roadrunner Transportation Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPO	$8.07 billion	1.88	$387.00 million	$2.89	44.56
Roadrunner Transportation Systems	$32.72 million	2.93	-$2.09 million	N/A	N/A

XPO has higher revenue and earnings than Roadrunner Transportation Systems.

Profitability

This table compares XPO and Roadrunner Transportation Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPO	4.32%	26.48%	5.57%
Roadrunner Transportation Systems	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and recommmendations for XPO and Roadrunner Transportation Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPO	1	0	19	0	2.90
Roadrunner Transportation Systems	0	0	0	0	0.00

XPO presently has a consensus target price of $138.00, suggesting a potential upside of 7.17%. Given XPO’s stronger consensus rating and higher possible upside, equities analysts clearly believe XPO is more favorable than Roadrunner Transportation Systems.

Volatility and Risk

XPO has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Roadrunner Transportation Systems has a beta of 3.79, indicating that its share price is 279% more volatile than the S&P 500.

Summary

XPO beats Roadrunner Transportation Systems on 10 of the 12 factors compared between the two stocks.

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.

About Roadrunner Transportation Systems

Roadrunner Transportation Systems, Inc. provides asset-right transportation and asset-light logistics services. It operates through four segments: Ascent Transportation Management (Ascent TM), Ascent On-Demand (Ascent OD), Less-than-Truckload (LTL), and Truckload (TL). The company offers domestic freight management solutions, including asset-backed truckload brokerage, specialized/heavy haul, LTL shipment execution, LTL carrier rate negotiations, access to its transportation management system, and freight audit/payment. It also provides air and ground expedite services for the transportation of automotive and industrial parts, paper products, and steel, as well as frozen and refrigerated foods, including dairy, poultry and meat, and consumers products, such as foods and beverages. In addition, the company arranges the pickup and delivery of TL freight through its 30 TL service centers in the United States; offers dry van truckload, temperature-controlled truckload, and logistics and warehouse services; and provides pickup, consolidation, linehaul, deconsolidation, and delivery of LTL shipments in the United States and Canada through 27 LTL service centers and approximately 140 third-party delivery agents. Further, the company provides international air and ocean freight forwarding, customs brokerage, regulatory compliance, project and order management, and retail consolidation services. It operates through a network of independent brokerage agents, direct sales force, company brokers, and commissioned sales representatives. The company offers its services under the Roadrunner and Ascent Global Logistics brands. Roadrunner Transportation Systems, Inc. was incorporated in 2005 and is headquartered in Downers Grove, Illinois.