Analyzing XPO (NYSE:XPO) and Hafnia (NYSE:HAFN)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPO	$8.07 billion	2.14	$189.00 million	$3.23	45.92
Hafnia	$1.92 billion	1.41	$793.28 million	$1.70	3.13

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XPO	4.81%	30.36%	5.95%
Hafnia	53.44%	36.90%	22.38%

Analyst Recommendations

This is a summary of recent ratings for XPO and Hafnia, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPO	1	1	15	0	2.82
Hafnia	0	0	2	0	3.00

XPO currently has a consensus target price of $156.35, indicating a potential upside of 5.42%. Hafnia has a consensus target price of $8.25, indicating a potential upside of 54.93%. Given Hafnia’s stronger consensus rating and higher possible upside, analysts clearly believe Hafnia is more favorable than XPO.

Institutional & Insider Ownership

97.7% of XPO shares are held by institutional investors. 2.0% of XPO shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

XPO beats Hafnia on 7 of the 13 factors compared between the two stocks.

About XPO

XPO, Inc. provides freight transportation services in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. The company operates in two segments, North American LTL and European Transportation. The North American LTL segment provides customers with less-than-truckload (LTL) services, such as geographic density and day-definite domestic services. This segment also offers cross-border U.S., Mexico, Canada, and the Caribbean, as well as engages in the operation of trailer manufacturing. The European Transportation segment offers dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, such as road-rail and road-short sea combinations. It provides its services to customers in various industries, such as industrial and manufacturing, retail and e-commerce, food and beverage, logistics and transportation, and consumer goods. The company was formerly known as XPO Logistics, Inc. and changed its name to XPO, Inc. in December 2022. XPO, Inc. was incorporated in 2000 and is based in Greenwich, Connecticut.

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.