RXO (NYSE:RXO – Get Free Report) and Hafnia (NYSE:HAFN – Get Free Report) are both mid-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Profitability
This table compares RXO and Hafnia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RXO | -6.81% | 1.64% | 0.63% |
| Hafnia | 53.44% | 36.90% | 22.38% |
Institutional & Insider Ownership
92.7% of RXO shares are owned by institutional investors. 1.5% of RXO shares are owned by company 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.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RXO | 2 | 12 | 3 | 0 | 2.06 |
| Hafnia | 0 | 0 | 2 | 0 | 3.00 |
RXO currently has a consensus target price of $26.47, suggesting a potential upside of 8.65%. Hafnia has a consensus target price of $8.25, suggesting a potential upside of 51.38%. Given Hafnia’s stronger consensus rating and higher probable upside, analysts clearly believe Hafnia is more favorable than RXO.
Valuation and Earnings
This table compares RXO and Hafnia”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RXO | $3.86 billion | 1.01 | $4.00 million | ($1.98) | -12.30 |
| Hafnia | $3.04 billion | 0.91 | $793.28 million | $1.70 | 3.21 |
Hafnia has lower revenue, but higher earnings than RXO. RXO is trading at a lower price-to-earnings ratio than Hafnia, indicating that it is currently the more affordable of the two stocks.
Summary
Hafnia beats RXO on 8 of the 13 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 Hafnia
Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.
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