Comprehensive Stock Comparison
Compare Karooooo Ltd. (KARO) vs QXO, Inc. (QXO) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | QXO | 119.3% revenue growth vs KARO's 8.6% |
| Value | KARO | Lower P/E (1.4x vs 61.6x) |
| Quality / Margins | KARO | 19.5% net margin vs QXO's -4.1% |
| Stability / Safety | KARO | Beta 0.99 vs QXO's 1.25, lower leverage |
| Dividends | QXO | 71.4% yield, 2-year raise streak, vs KARO's 2.7% |
| Momentum (1Y) | QXO | +88.0% vs KARO's +7.1% |
| Efficiency (ROA) | KARO | 19.6% ROA vs QXO's -1.8%, ROIC 34.4% vs -3.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Karooooo operates a mobility software-as-a-service platform that provides real-time vehicle tracking, fleet management, and logistics solutions primarily for commercial fleets across multiple continents. The company generates revenue through subscription-based SaaS fees for its telematics platform—which includes fleet management, asset tracking, and insurance analytics services—with the majority coming from recurring subscriptions. Its competitive advantage lies in its comprehensive, integrated platform that combines real-time data analytics with deep operational insights, creating switching costs for fleet operators who rely on its ecosystem for efficiency and risk management.
QXO is a business software and consulting firm that provides enterprise resource planning, accounting, and IT managed services to small and medium-sized businesses. It generates revenue through software licensing and subscriptions — primarily from its ERP and business management platforms — supplemented by consulting, training, and technical support services. The company's moat comes from its deep industry specialization in manufacturing and distribution sectors, where it offers integrated solutions that combine software with specialized consulting expertise.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
KARO leads in 3 of 6 categories — strongest in Financial Metrics and Profitability & Efficiency. 3 categories are tied.
Financial Metrics (TTM)
QXO and KARO operate at a comparable scale, with $6.8B and $5.2B in trailing revenue. KARO is the more profitable business, keeping 19.5% of every revenue dollar as net income compared to QXO's -4.1%. On growth, QXO holds the edge at +147.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | KAROKarooooo Ltd. | QXOQXO, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $5.2B | $6.8B |
| EBITDAEarnings before interest/tax | $2.2B | $60M |
| Net IncomeAfter-tax profit | $1.0B | -$279M |
| Free Cash FlowCash after capex | $0 | $183M |
| Gross MarginGross profit ÷ Revenue | +69.3% | +23.0% |
| Operating MarginEBIT ÷ Revenue | +27.7% | -3.6% |
| Net MarginNet income ÷ Revenue | +19.5% | -4.1% |
| FCF MarginFCF ÷ Revenue | +20.3% | +2.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.8% | +147.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +9.2% | -7.5% |
Valuation Metrics
On an enterprise value basis, KARO's 11.0x EV/EBITDA is more attractive than QXO's 107.3x.
| Metric | KAROKarooooo Ltd. | QXOQXO, Inc. |
|---|---|---|
| Market CapShares × price | $1.5B | $17.0B |
| Enterprise ValueMkt cap + debt − cash | $1.4B | $19.1B |
| Trailing P/EPrice ÷ TTM EPS | 25.30x | -38.02x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.40x | 61.60x |
| PEG RatioP/E ÷ EPS growth rate | 1.58x | — |
| EV / EBITDAEnterprise value multiple | 11.00x | 107.27x |
| Price / SalesMarket cap ÷ Revenue | 5.10x | 2.48x |
| Price / BookPrice ÷ Book value/share | 7.16x | 0.02x |
| Price / FCFMarket cap ÷ FCF | 25.09x | 92.62x |
Profitability & Efficiency
KARO delivers a 31.6% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $-3 for QXO. KARO carries lower financial leverage with a 0.22x debt-to-equity ratio, signaling a more conservative balance sheet compared to QXO's 0.46x. On the Piotroski fundamental quality scale (0–9), KARO scores 6/9 vs QXO's 4/9, reflecting solid financial health.
| Metric | KAROKarooooo Ltd. | QXOQXO, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +31.6% | -2.9% |
| ROA (TTM)Return on assets | +19.6% | -1.8% |
| ROICReturn on invested capital | +34.4% | -3.1% |
| ROCEReturn on capital employed | +37.6% | -2.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.22x | 0.46x |
| Net DebtTotal debt minus cash | -$319M | $2.1B |
| Cash & Equiv.Liquid assets | $1.0B | $2.4B |
| Total DebtShort + long-term debt | $728M | $4.5B |
| Interest CoverageEBIT ÷ Interest expense | 28.64x | -1.79x |
Total Returns (with DRIP)
A $10,000 investment in KARO five years ago would be worth $15,004 today (with dividends reinvested), compared to $1,422 for QXO. Over the past 12 months, QXO leads with a +88.0% total return vs KARO's +7.1%. The 3-year compound annual growth rate (CAGR) favors KARO at 25.7% vs QXO's -38.0% — a key indicator of consistent wealth creation.
| Metric | KAROKarooooo Ltd. | QXOQXO, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +5.7% | +21.5% |
| 1-Year ReturnPast 12 months | +7.1% | +88.0% |
| 3-Year ReturnCumulative with dividends | +98.4% | -76.2% |
| 5-Year ReturnCumulative with dividends | +50.0% | -85.8% |
| 10-Year ReturnCumulative with dividends | +50.0% | -47.8% |
| CAGR (3Y)Annualised 3-year return | +25.7% | -38.0% |
Risk & Volatility
KARO is the less volatile stock with a 0.99 beta — it tends to amplify market swings less than QXO's 1.25 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. QXO currently trades 86.7% from its 52-week high vs KARO's 74.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KAROKarooooo Ltd. | QXOQXO, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 1.25x |
| 52-Week HighHighest price in past year | $63.36 | $27.61 |
| 52-Week LowLowest price in past year | $35.88 | $11.97 |
| % of 52W HighCurrent price vs 52-week peak | +74.5% | +86.7% |
| RSI (14)Momentum oscillator 0–100 | 48.8 | 47.5 |
| Avg Volume (50D)Average daily shares traded | 38K | 7.4M |
Analyst Outlook
Wall Street rates KARO as "Buy" and QXO as "Buy". Consensus price targets imply 29.2% upside for KARO (target: $61) vs 25.3% for QXO (target: $30). For income investors, QXO offers the higher dividend yield at 71.38% vs KARO's 2.68%.
| Metric | KAROKarooooo Ltd. | QXOQXO, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $61.00 | $30.00 |
| # AnalystsCovering analysts | 3 | 3 |
| Dividend YieldAnnual dividend ÷ price | +2.7% | +71.4% |
| Dividend StreakConsecutive years of raises | 4 | 2 |
| Dividend / ShareAnnual DPS | $20.21 | $17.10 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Apr 21 | Feb 26 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 100 | 147.34 | +47.3% |
| QXO, Inc. (QXO) | 100 | 4.13 | -95.9% |
Karooooo Ltd. (KARO) returned +50% over 5 years vs QXO, Inc. (QXO)'s -86%. A $10,000 investment in KARO 5 years ago would be worth $15,004 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | $1.8B | $4.6B | +160.0% |
| QXO, Inc. (QXO) | $34M | $6.8B | +19952.2% |
QXO, Inc.'s revenue grew from $34M (2016) to $6.8B (2025) — a 80.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 11.0% | 20.2% | +83.4% |
| QXO, Inc. (QXO) | 10.1% | -4.1% | -140.5% |
QXO, Inc.'s net margin went from 10% (2016) to -4% (2025).
Chart 4P/E Ratio History — 5 Years
| Stock | 2021 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 3.1 | 1.5 | -51.6% |
Karooooo Ltd. has traded in a 1x–3x P/E range over 5 years; current trailing P/E is ~25x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 9.5 | 29.81 | +213.8% |
| QXO, Inc. (QXO) | 6.15 | -0.63 | -110.2% |
QXO, Inc.'s EPS grew from $6.15 (2016) to $-0.63 (2025) — a NaN% CAGR.
Chart 6Free Cash Flow — 5 Years
Karooooo Ltd. generated $929M FCF in 2025 (+125% vs 2021). QXO, Inc. generated $183M FCF in 2025 (+164540% vs 2021).
KARO vs QXO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is KARO or QXO a better buy right now?
Karooooo Ltd. (KARO) offers the better valuation at 25.3x trailing P/E (1.4x forward), making it the more compelling value choice. Analysts rate Karooooo Ltd. (KARO) a "Buy" — based on 3 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.
02Which has the better valuation — KARO or QXO?
On forward P/E, Karooooo Ltd. is actually cheaper at 1.4x.
03Which is the better long-term investment — KARO or QXO?
Over the past 5 years, Karooooo Ltd. (KARO) delivered a total return of +50.0%, compared to -85.8% for QXO, Inc. (QXO). A $10,000 investment in KARO five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: KARO returned +50.0% versus QXO's -47.8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — KARO or QXO?
By beta (market sensitivity over 5 years), Karooooo Ltd. (KARO) is the lower-risk stock at 0.99β versus QXO, Inc.'s 1.25β — meaning QXO is approximately 25% more volatile than KARO relative to the S&P 500. On balance sheet safety, Karooooo Ltd. (KARO) carries a lower debt/equity ratio of 22% versus 46% for QXO, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — KARO or QXO?
Karooooo Ltd. (KARO) is the more profitable company, earning 20.2% net margin versus -4.1% for QXO, Inc. — meaning it keeps 20.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KARO leads at 28.7% versus -3.6% for QXO. At the gross margin level — before operating expenses — KARO leads at 70.1%, 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.
06Is KARO or QXO more undervalued right now?
On forward earnings alone, Karooooo Ltd. (KARO) trades at 1.4x forward P/E versus 61.6x for QXO, Inc. — 60.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KARO: 29.2% to $61.00.
07Which pays a better dividend — KARO or QXO?
All stocks in this comparison pay dividends. QXO, Inc. (QXO) offers the highest yield at 71.4%, versus 2.7% for Karooooo Ltd. (KARO).
08Is KARO or QXO better for a retirement portfolio?
For long-horizon retirement investors, Karooooo Ltd. (KARO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.99), 2.7% yield). Both have compounded well over 10 years (KARO: +50.0%, QXO: -47.8%), 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.
09What are the main differences between KARO and QXO?
These companies operate in different sectors (KARO (Technology) and QXO (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. In terms of investment character: KARO is a small-cap quality compounder stock; QXO is a mid-cap income-oriented stock. 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.
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