FDX vs XPO

For growth investors, XPO Logistics, Inc.

(XPO) is the stronger pick with 1. 1% revenue growth year-over-year, versus 0. 3% for FedEx Corporation (FDX). FedEx Corporation (FDX) offers the better valuation at 22. 5x trailing P/E (19. 1x forward), making it the more compelling value choice. Analysts rate FedEx Corporation (FDX) a "Buy" — based on 49 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, FedEx Corporation (FDX) is the cheapest at 22.

5x versus XPO Logistics, Inc. at 77. 4x. On forward P/E, FedEx Corporation is actually cheaper at 19. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: FedEx Corporation wins at 0. 68x versus XPO Logistics, Inc. 's 1. 52x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, XPO Logistics, Inc.

(XPO) delivered a total return of +298. 9%, compared to +30. 2% for FedEx Corporation (FDX). Over 10 years, the gap is even starker: XPO returned +21. 2% versus FDX's +155. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), FedEx Corporation (FDX) is the lower-risk stock at 1.

03β versus XPO Logistics, Inc. 's 1. 72β — meaning XPO is approximately 66% more volatile than FDX relative to the S&P 500. On balance sheet safety, FedEx Corporation (FDX) carries a lower debt/equity ratio of 133% versus 3% for XPO Logistics, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), XPO Logistics, Inc.

(XPO) is pulling ahead at 1. 1% versus 0. 3% for FedEx Corporation (FDX). On earnings-per-share growth, the picture is similar: FedEx Corporation grew EPS -2. 3% year-over-year, compared to -18. 3% for XPO Logistics, Inc.. Over a 3-year CAGR, XPO leads at 1. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

FedEx Corporation (FDX) is the more profitable company, earning 4.

7% net margin versus 3. 9% for XPO Logistics, Inc. — meaning it keeps 4. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: XPO leads at 8. 9% versus 6. 9% for FDX. At the gross margin level — before operating expenses — FDX leads at 21. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, FedEx Corporation (FDX) is the more undervalued stock at a PEG of 0. 68x versus XPO Logistics, Inc. 's 1. 52x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, FedEx Corporation (FDX) trades at 19. 1x forward P/E versus 41. 9x for XPO Logistics, Inc. — 22. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for XPO: 3. 5% to $211. 60.

In this comparison, FDX (1.

5% yield) pays a dividend. XPO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, FedEx Corporation (FDX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

03), 1. 5% yield, +155. 1% 10Y return). XPO Logistics, Inc. (XPO) carries a higher beta of 1. 72 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (FDX: +155. 1%, XPO: +21. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

FDX pays a dividend while XPO does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.