WAB
Westinghouse Air Brake Technologies Corporation
Railroads
Market Cap$45.09B
5Y Perf.+184.9%
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Stock Comparison
WAB vs RXO
Revenue, margins, valuation, and 5-year total return — side by side.
RXO
RXO, Inc.
Trucking
Market Cap$3.81B
5Y Perf.+10.2%
WAB vs RXO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | WAB | RXO |
|---|---|---|
| Industry | Railroads | Trucking |
| Market Cap | $45.09B | $3.81B |
| Revenue (TTM) | $11.51B | $4.31B |
| Net Income (TTM) | $1.21B | $-69M |
| Gross Margin | 33.8% | 17.5% |
| Operating Margin | 16.1% | -0.2% |
| Forward P/E | 25.0x | — |
| Total Debt | $5.54B | $861M |
| Cash & Equiv. | $789M | $18M |
WAB vs RXO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
WAB
RXO
| Stock | Oct 22 | May 26 | Return |
|---|---|---|---|
| Westinghouse Air Br… (WAB) | 100 | 284.9 | +184.9% |
| RXO, Inc. (RXO) | 100 | 110.2 | +10.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: WAB vs RXO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: WAB leads in 4 of 6 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. RXO, Inc. is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
WAB
Westinghouse Air Brake Technologies Corporation
The Income Pick
WAB carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 6 yrs, beta 1.11, yield 0.4%
- 247.1% 10Y total return vs RXO's 10.2%
- Lower volatility, beta 1.11, Low D/E 49.5%, current ratio 1.11x
Best for: income & stability and long-term compounding
RXO
RXO, Inc.
The Growth Play
RXO is the clearest fit if your priority is growth exposure.
- Rev growth 26.2%, EPS growth 72.8%, 3Y rev CAGR 6.2%
- 26.2% revenue growth vs WAB's 7.5%
- +78.2% vs WAB's +40.6%
Best for: growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | RXO | 26.2% revenue growth vs WAB's 7.5% |
| Quality / Margins | WAB | 10.5% margin vs RXO's -1.6% |
| Stability / Safety | WAB | Beta 1.11 vs RXO's 2.74, lower leverage |
| Dividends | WAB | 0.4% yield; 6-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | RXO | +78.2% vs WAB's +40.6% |
| Efficiency (ROA) | WAB | 5.6% ROA vs RXO's -2.9%, ROIC 9.6% vs -0.2% |
WAB vs RXO — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
WAB vs RXO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLWABLAGGINGRXO
RXORXO, Inc.
1leads
WABWestinghouse Air Brak…
3leads
6 Total Categories
CATEGORYLEADERvs RXOMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
WAB6/6
Valuation MetricsMultiples, price ratios, and targets
RXO3/4
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
WAB6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
WAB4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
WAB leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
WAB is the larger business by revenue, generating $11.5B annually — 2.7x RXO's $4.3B. WAB is the more profitable business, keeping 10.5% of every revenue dollar as net income compared to RXO's -1.6%. On growth, WAB holds the edge at +13.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | WABWestinghouse Air … | RXORXO, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $11.5B | $4.3B |
| EBITDAEarnings before interest/tax | $2.3B | $77M |
| Net IncomeAfter-tax profit | $1.2B | -$69M |
| Free Cash FlowCash after capex | $1.6B | $9M |
| Gross MarginGross profit ÷ Revenue | +33.8% | +17.5% |
| Operating MarginEBIT ÷ Revenue | +16.1% | -0.2% |
| Net MarginNet income ÷ Revenue | +10.5% | -1.6% |
| FCF MarginFCF ÷ Revenue | +14.3% | +0.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.0% | -99.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +12.8% | -16.7% |
WAB leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
RXO leads this category, winning 3 of 4 comparable metrics.
Valuation Metrics
On an enterprise value basis, WAB's 21.0x EV/EBITDA is more attractive than RXO's 42.7x.
| Metric | WABWestinghouse Air … | RXORXO, Inc. |
|---|---|---|
| Market CapShares × price | $45.1B | $3.8B |
| Enterprise ValueMkt cap + debt − cash | $49.8B | $4.7B |
| Trailing P/EPrice ÷ TTM EPS | 38.90x | -39.24x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.05x | — |
| PEG RatioP/E ÷ EPS growth rate | 1.51x | — |
| EV / EBITDAEnterprise value multiple | 21.03x | 42.72x |
| Price / SalesMarket cap ÷ Revenue | 4.04x | 0.66x |
| Price / BookPrice ÷ Book value/share | 4.06x | 2.53x |
| Price / FCFMarket cap ÷ FCF | 30.08x | — |
RXO leads this category, winning 3 of 4 comparable metrics.
Profitability & Efficiency
WAB leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
WAB delivers a 10.9% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $-6 for RXO. WAB carries lower financial leverage with a 0.50x debt-to-equity ratio, signaling a more conservative balance sheet compared to RXO's 0.56x. On the Piotroski fundamental quality scale (0–9), RXO scores 6/9 vs WAB's 5/9, reflecting solid financial health.
| Metric | WABWestinghouse Air … | RXORXO, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +10.9% | -5.9% |
| ROA (TTM)Return on assets | +5.6% | -2.9% |
| ROICReturn on invested capital | +9.6% | -0.2% |
| ROCEReturn on capital employed | +11.7% | -0.3% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 0.50x | 0.56x |
| Net DebtTotal debt minus cash | $4.8B | $843M |
| Cash & Equiv.Liquid assets | $789M | $18M |
| Total DebtShort + long-term debt | $5.5B | $861M |
| Interest CoverageEBIT ÷ Interest expense | 7.41x | -3.15x |
WAB leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
WAB leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in WAB five years ago would be worth $32,899 today (with dividends reinvested), compared to $11,024 for RXO. Over the past 12 months, RXO leads with a +78.2% total return vs WAB's +40.6%. The 3-year compound annual growth rate (CAGR) favors WAB at 39.3% vs RXO's 6.2% — a key indicator of consistent wealth creation.
| Metric | WABWestinghouse Air … | RXORXO, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +23.0% | +80.3% |
| 1-Year ReturnPast 12 months | +40.6% | +78.2% |
| 3-Year ReturnCumulative with dividends | +170.1% | +19.6% |
| 5-Year ReturnCumulative with dividends | +229.0% | +10.2% |
| 10-Year ReturnCumulative with dividends | +247.1% | +10.2% |
| CAGR (3Y)Annualised 3-year return | +39.3% | +6.2% |
WAB leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — WAB and RXO each lead in 1 of 2 comparable metrics.
Risk & Volatility
WAB is the less volatile stock with a 1.11 beta — it tends to amplify market swings less than RXO's 2.74 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RXO currently trades 99.4% from its 52-week high vs WAB's 96.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | WABWestinghouse Air … | RXORXO, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.11x | 2.74x |
| 52-Week HighHighest price in past year | $275.84 | $23.29 |
| 52-Week LowLowest price in past year | $184.26 | $10.43 |
| % of 52W HighCurrent price vs 52-week peak | +96.3% | +99.4% |
| RSI (14)Momentum oscillator 0–100 | 58.7 | 62.5 |
| Avg Volume (50D)Average daily shares traded | 905K | 1.9M |
Evenly matched — WAB and RXO each lead in 1 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates WAB as "Buy" and RXO as "Hold". Consensus price targets imply 9.5% upside for WAB (target: $291) vs -30.9% for RXO (target: $16). WAB is the only dividend payer here at 0.38% yield — a key consideration for income-focused portfolios.
| Metric | WABWestinghouse Air … | RXORXO, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $291.00 | $16.00 |
| # AnalystsCovering analysts | 34 | 20 |
| Dividend YieldAnnual dividend ÷ price | +0.4% | — |
| Dividend StreakConsecutive years of raises | 6 | — |
| Dividend / ShareAnnual DPS | $1.01 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.5% | +0.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
WAB leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). RXO leads in 1 (Valuation Metrics). 1 tied.
Best OverallWestinghouse Air Brake Tech… (WAB)Leads 3 of 6 categories
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WAB vs RXO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is WAB or RXO a better buy right now?
For growth investors, RXO, Inc.
(RXO) is the stronger pick with 26. 2% revenue growth year-over-year, versus 7. 5% for Westinghouse Air Brake Technologies Corporation (WAB). Westinghouse Air Brake Technologies Corporation (WAB) offers the better valuation at 38. 9x trailing P/E (25. 0x forward), making it the more compelling value choice. Analysts rate Westinghouse Air Brake Technologies Corporation (WAB) a "Buy" — based on 34 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 is the better long-term investment — WAB or RXO?
Over the past 5 years, Westinghouse Air Brake Technologies Corporation (WAB) delivered a total return of +229.
0%, compared to +10. 2% for RXO, Inc. (RXO). Over 10 years, the gap is even starker: WAB returned +247. 1% versus RXO's +10. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — WAB or RXO?
By beta (market sensitivity over 5 years), Westinghouse Air Brake Technologies Corporation (WAB) is the lower-risk stock at 1.
11β versus RXO, Inc. 's 2. 74β — meaning RXO is approximately 147% more volatile than WAB relative to the S&P 500. On balance sheet safety, Westinghouse Air Brake Technologies Corporation (WAB) carries a lower debt/equity ratio of 50% versus 56% for RXO, Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — WAB or RXO?
By revenue growth (latest reported year), RXO, Inc.
(RXO) is pulling ahead at 26. 2% versus 7. 5% for Westinghouse Air Brake Technologies Corporation (WAB). On earnings-per-share growth, the picture is similar: RXO, Inc. grew EPS 72. 8% year-over-year, compared to 13. 1% for Westinghouse Air Brake Technologies Corporation. Over a 3-year CAGR, WAB leads at 10. 1% 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.
05Which has better profit margins — WAB or RXO?
Westinghouse Air Brake Technologies Corporation (WAB) is the more profitable company, earning 10.
5% net margin versus -1. 7% for RXO, Inc. — meaning it keeps 10. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WAB leads at 16. 7% versus -0. 1% for RXO. At the gross margin level — before operating expenses — WAB leads at 31. 5%, 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 WAB or RXO more undervalued right now?
Analyst consensus price targets imply the most upside for WAB: 9.
5% to $291. 00.
07Which pays a better dividend — WAB or RXO?
In this comparison, WAB (0.
4% yield) pays a dividend. RXO does not pay a meaningful dividend and should not be held primarily for income.
08Is WAB or RXO better for a retirement portfolio?
For long-horizon retirement investors, Westinghouse Air Brake Technologies Corporation (WAB) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.
11), +247. 1% 10Y return). RXO, Inc. (RXO) carries a higher beta of 2. 74 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (WAB: +247. 1%, RXO: +10. 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.
09What are the main differences between WAB and RXO?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: WAB is a mid-cap quality compounder stock; RXO is a small-cap high-growth 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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