Contrasting XPO Logistics (XPO) and ArcBest Corporation (ARCB)
XPO Logistics (NYSE: XPO) and ArcBest Corporation (NASDAQ:ARCB) are both transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.
This table compares XPO Logistics and ArcBest Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares XPO Logistics and ArcBest Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|XPO Logistics||$14.69 billion||0.54||$1.20 billion||$0.87||77.00|
|ArcBest Corporation||$2.77 billion||0.30||$146.83 million||$0.86||38.20|
XPO Logistics has higher revenue and earnings than ArcBest Corporation. ArcBest Corporation is trading at a lower price-to-earnings ratio than XPO Logistics, indicating that it is currently the more affordable of the two stocks.
ArcBest Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. XPO Logistics does not pay a dividend. ArcBest Corporation pays out 37.2% of its earnings in the form of a dividend.
Institutional & Insider Ownership
89.5% of XPO Logistics shares are owned by institutional investors. Comparatively, 84.9% of ArcBest Corporation shares are owned by institutional investors. 16.9% of XPO Logistics shares are owned by insiders. Comparatively, 1.0% of ArcBest Corporation shares are owned by 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.
This is a summary of current ratings and price targets for XPO Logistics and ArcBest Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
XPO Logistics presently has a consensus price target of $68.43, indicating a potential upside of 2.15%. ArcBest Corporation has a consensus price target of $27.40, indicating a potential downside of 16.59%. Given XPO Logistics’ stronger consensus rating and higher possible upside, analysts clearly believe XPO Logistics is more favorable than ArcBest Corporation.
Risk & Volatility
XPO Logistics has a beta of 2.37, indicating that its stock price is 137% more volatile than the S&P 500. Comparatively, ArcBest Corporation has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.
XPO Logistics beats ArcBest Corporation on 13 of the 16 factors compared between the two stocks.
About XPO Logistics
XPO Logistics, Inc. is a global provider of supply chain solutions. The Company operates in two segments: Transportation and Logistics. The Transportation segment provides freight brokerage, last mile, less-than-truckload (LTL), full truckload and global forwarding services. The Logistics segment provides a range of contract logistics services, including highly engineered and customized solutions, value-added warehousing and distribution, cold chain solutions and other inventory solutions. Its freight brokerage operations encompass truck brokerage globally, as well as intermodal, drayage and expedite services in North America. In Logistics segment, it provides warehousing and distribution solutions, such as factory support, aftermarket support, integrated manufacturing, packaging, labeling and transportation. As of December 31, 2016, the Company had more than 10,000 independent owner operators under contract to provide drayage, expedite, last mile and LTL services to its customers.
About ArcBest Corporation
ArcBest Corporation is a holding company of businesses providing integrated logistics solutions. The Company operates through three segments: Asset-Based, which consists of ABF Freight System, Inc. and other subsidiaries; ArcBest, which represents the consolidation of the operations of the Premium Logistics, Transportation Management and Household Goods Moving Services segments, and FleetNet, which includes the results of operations of FleetNet America, Inc. (FleetNet). Its Asset-Based operations offer transportation of general commodities through standard, time-critical, expedited and guaranteed LTL services-nationally and regionally. Its ArcBest segment includes truckload, expedite, international, warehousing, freight transportation, management services and moving services. Its FleetNet segment provides roadside assistance and maintenance management services for commercial vehicles to customers in the United States and Canada through a network of third-party service providers.
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