RXO (NYSE:RXO) versus U-Haul (NYSE:UHAL) Head-To-Head Contrast

RXO (NYSE:RXO) and U-Haul (NYSE:UHAL) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and price targets for RXO and U-Haul, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RXO	4	11	4	0	2.00
U-Haul	1	0	0	1	2.50

RXO currently has a consensus target price of $16.69, suggesting a potential upside of 15.69%. Given RXO’s higher probable upside, analysts clearly believe RXO is more favorable than U-Haul.

Earnings and Valuation

This table compares RXO and U-Haul”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RXO	$4.55 billion	0.52	-$290.00 million	($0.43)	-33.55
U-Haul	$5.83 billion	N/A	$367.09 million	$1.01	52.00

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

Institutional and Insider Ownership

92.7% of RXO shares are held by institutional investors. Comparatively, 3.6% of U-Haul shares are held by institutional investors. 2.8% of RXO shares are held by company insiders. Comparatively, 43.6% of U-Haul shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares RXO and U-Haul’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RXO	-1.25%	0.88%	0.43%
U-Haul	3.90%	2.99%	1.12%

Volatility and Risk

RXO has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, U-Haul has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Summary

U-Haul beats RXO on 10 of the 14 factors compared between the two stocks.

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.

About U-Haul

AMERCO operates as a do-it-yourself moving and storage operator for household and commercial goods in the United States and Canada. The company’s Moving and Storage segment rents trucks, trailers, portable moving and storage units, specialty rental items, and self-storage spaces primarily to the household movers; and sells moving supplies, towing accessories, and propane. It also provides uhaul.com, an online marketplace that connects consumers to independent Moving Help service providers and independent self-storage affiliates; auto transport and tow dolly options to transport vehicles; and specialty boxes for dishes, computers, and sensitive electronic equipment, as well as tapes, security locks, and packing supplies. This segment rents its products and services through a network of approximately 2,065 company operated retail moving stores and 20,100 independent U-Haul dealers. As of March 31, 2020, it had a rental fleet of approximately 176,000 trucks, 127,000 trailers, and 41,000 towing devices; and 1,745 self-storage locations with approximately 774,000 rentable storage units. The company’s Property and Casualty Insurance segment offers loss adjusting and claims handling services. It also provides moving and storage protection packages, such as Safemove and Safetow packages, which offer moving and towing customers with a damage waiver, cargo protection, and medical and life insurance coverage; Safestor that protects storage customers from loss on their goods in storage; Safestor Mobile, which protects customers stored belongings; and Safemove Plus, which provides rental customers with a layer of primary liability protection. The company’s Life Insurance segment provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, medicare supplement, and annuity policies. AMERCO was founded in 1945 and is based in Reno, Nevada.