Financial Analysis: RXO (NYSE:RXO) vs. Hafnia (NYSE:HAFN)

Hafnia (NYSE:HAFN) and RXO (NYSE:RXO) are both mid-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hafnia	53.44%	36.90%	22.38%
RXO	-6.81%	1.64%	0.63%

Insider and Institutional Ownership

92.7% of RXO shares are owned by institutional investors. 1.5% of RXO shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Hafnia and RXO”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$1.92 billion	1.51	$793.28 million	$1.70	3.36
RXO	$3.86 billion	0.99	$4.00 million	($1.98)	-11.95

Hafnia has higher earnings, but lower revenue 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Hafnia and RXO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	0	2	0	3.00
RXO	2	12	3	0	2.06

Hafnia currently has a consensus target price of $8.25, indicating a potential upside of 44.23%. RXO has a consensus target price of $26.47, indicating a potential upside of 11.82%. Given Hafnia’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Hafnia is more favorable than RXO.

Summary

Hafnia beats RXO on 9 of the 13 factors compared between the two stocks.

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.

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.