Financial Survey: Global Industrial (NYSE:GIC) and QXO (NYSE:QXO)

Global Industrial (NYSE:GIC) and QXO (NYSE:QXO) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current ratings for Global Industrial and QXO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Industrial	0	1	1	0	2.50
QXO	1	1	13	2	2.94

QXO has a consensus price target of $28.00, indicating a potential upside of 108.64%. Given QXO’s stronger consensus rating and higher possible upside, analysts clearly believe QXO is more favorable than Global Industrial.

Profitability

This table compares Global Industrial and QXO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Industrial	6.06%	21.49%	11.60%
QXO	-5.17%	2.41%	1.20%

Earnings and Valuation

This table compares Global Industrial and QXO”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Industrial	$1.38 billion	1.10	$72.10 million	$2.24	17.75
QXO	$6.84 billion	2.03	-$279.40 million	($0.90)	-14.91

Global Industrial has higher earnings, but lower revenue than QXO. QXO is trading at a lower price-to-earnings ratio than Global Industrial, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Global Industrial has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, QXO has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500.

Institutional & Insider Ownership

31.2% of Global Industrial shares are held by institutional investors. Comparatively, 58.7% of QXO shares are held by institutional investors. 64.5% of Global Industrial shares are held by company insiders. Comparatively, 41.0% of QXO shares are held 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

QXO beats Global Industrial on 8 of the 15 factors compared between the two stocks.

About Global Industrial

Global Industrial Company operates as an industrial distributor of various industrial and maintenance, repair, and operation (MRO) products in North America. It offers storage and shelving, safety and security, carts and trucks, HVAC and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, foodservice and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw materials. The company offers industrial and MRO products under the Global, GlobalIndustrial.com, Nexel, Paramount, Interion, and Absocold trademarks. It serves businesses; state, local, and private educational organizations; and government entities through relationship marketers, e-commerce sites, signature campaigns, and catalogs. The company was formerly known as Systemax Inc. Global Industrial Company was founded in 1949 and is headquartered in Port Washington, New York.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.