Contrasting RXO (NYSE:RXO) and Schneider National (NYSE:SNDR)

Schneider National (NYSE:SNDR) and RXO (NYSE:RXO) are both mid-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

28.5% of Schneider National shares are owned by institutional investors. Comparatively, 92.7% of RXO shares are owned by institutional investors. 32.7% of Schneider National shares are owned by company insiders. Comparatively, 2.8% of RXO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Schneider National and RXO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schneider National	2.03%	4.04%	2.44%
RXO	-1.25%	0.88%	0.43%

Valuation and Earnings

This table compares Schneider National and RXO”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schneider National	$5.29 billion	0.99	$117.00 million	$0.64	46.55
RXO	$4.55 billion	0.56	-$290.00 million	($0.43)	-36.20

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

Volatility and Risk

Schneider National has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, RXO has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Schneider National and RXO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schneider National	1	8	8	1	2.50
RXO	4	12	4	0	2.00

Schneider National currently has a consensus target price of $28.80, suggesting a potential downside of 3.33%. RXO has a consensus target price of $16.14, suggesting a potential upside of 3.71%. Given RXO’s higher probable upside, analysts clearly believe RXO is more favorable than Schneider National.

Summary

Schneider National beats RXO on 12 of the 15 factors compared between the two stocks.

About Schneider National

Schneider National, Inc., together with its subsidiaries, provides surface transportation and logistics solutions in the United States, Canada, and Mexico. It operates through three segments: Truckload, Intermodal, and Logistics. The Truckload segment offers over the road freight transportation services primarily through dry van, bulk, temperature-controlled, and flat-bed trailers across either network or dedicated configurations. The Intermodal segment provides door-to-door container on flat car services through a combination of rail and dray transportation using company-owned containers, chassis, and trucks. The Logistics segment offers asset-light freight brokerage, supply chain, warehousing, and import/export services to manage and move its customers' freight. The company leases equipment, such as trucks to owner-operators; and provides insurance for the company drivers and owner-operators. Schneider National, Inc. was founded in 1935 and is headquartered in Green Bay, Wisconsin.

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.