Critical Review: QXO (QXO) vs. Its Peers

QXO (NASDAQ:QXO) is one of 141 public companies in the “Data processing & preparation” industry, but how does it compare to its competitors? We will compare QXO to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.

Profitability

This table compares QXO and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QXO	-3.75%	0.51%	0.24%
QXO Competitors	-152.69%	-1,936.22%	-8.90%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for QXO and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	0	0	0	0	N/A
QXO Competitors	782	4153	5469	118	2.47

As a group, “Data processing & preparation” companies have a potential upside of 15.85%. Given QXO’s competitors higher probable upside, analysts clearly believe QXO has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares QXO and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
QXO	$57.11 million	-$1.07 million	-8.57
QXO Competitors	$1.25 billion	$8.01 million	-6.30

QXO’s competitors have higher revenue and earnings than QXO. QXO is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

QXO has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500. Comparatively, QXO’s competitors have a beta of 1.09, indicating that their average stock price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

58.7% of QXO shares are owned by institutional investors. Comparatively, 44.9% of shares of all “Data processing & preparation” companies are owned by institutional investors. 90.6% of QXO shares are owned by insiders. Comparatively, 20.9% of shares of all “Data processing & preparation” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

QXO beats its competitors on 6 of the 10 factors compared.

QXO Company Profile

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.