XPO (NYSE:XPO) and DHL Group (OTCMKTS:DHLGY) Head-To-Head Contrast

DHL Group (OTCMKTS:DHLGY) and XPO (NYSE:XPO) are both large-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for DHL Group and XPO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHL Group	0	5	3	1	2.56
XPO	1	4	19	2	2.85

XPO has a consensus price target of $221.45, suggesting a potential upside of 17.90%. Given XPO’s stronger consensus rating and higher probable upside, analysts clearly believe XPO is more favorable than DHL Group.

Risk and Volatility

DHL Group has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, XPO has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500.

Valuation and Earnings

This table compares DHL Group and XPO”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHL Group	$93.72 billion	0.78	$3.96 billion	$3.37	9.82
XPO	$8.83 billion	2.48	$316.00 million	$4.24	44.30

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

Profitability

This table compares DHL Group and XPO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHL Group	4.33%	16.54%	5.25%
XPO	5.69%	32.80%	7.60%

Institutional and Insider Ownership

97.7% of XPO shares are owned by institutional investors. 0.9% of XPO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

XPO beats DHL Group on 13 of the 15 factors compared between the two stocks.

About DHL Group

Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.

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.