Investment Comparison: C.H. Robinson vs. GXO Logistics
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- C.H. Robinson Financial Overview: In FY 2025, C.H. Robinson reported nearly $16.2 billion in revenue, an 8% decline year-over-year, yet net income reached approximately $587 million, indicating resilience and improved profitability amidst challenges.
- GXO Logistics Growth Potential: GXO Logistics achieved approximately $13.2 billion in revenue for FY 2025, a 12.5% increase, but net income was only $32 million, resulting in a mere 0.2% net margin, highlighting significant operational cost pressures.
- Risk Analysis: C.H. Robinson faces technology and cybersecurity risks, relying on third-party transport providers, which could lead to losses if partners fail; conversely, GXO must navigate integration challenges from rapid growth and rising labor costs.
- Valuation Comparison: C.H. Robinson's forward P/E ratio stands at 31.1x, significantly higher than GXO's 16.5x, reflecting its superior profitability and cash flow generation, despite GXO appearing cheaper based on future earnings and sales estimates.
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Analyst Views on CHRW
Wall Street analysts forecast CHRW stock price to fall
20 Analyst Rating
14 Buy
5 Hold
1 Sell
Moderate Buy
Current: 191.110
Low
85.00
Averages
167.65
High
210.00
Current: 191.110
Low
85.00
Averages
167.65
High
210.00
About CHRW
C.H. Robinson Worldwide, Inc. is a global provider of transportation services and logistics solutions. Its segments include North American Surface Transportation (NAST), Global Forwarding and All Other and Corporate. NAST provides transportation and logistics services across North America through a network of offices in the United States, Canada, and Mexico. The services provided by NAST include truckload and less than truckload transportation brokerage services. Global Forwarding provides transportation and logistics services through an international network of offices in North America, Europe, Asia, Oceania, South America, and the Middle East and also contracts with independent agents worldwide. The services include ocean freight services, air freight services, and customs brokerage. The All Other and Corporate segments include Robinson Fresh and Managed Solutions. Robinson Fresh offers sourcing services that include the buying, selling, and marketing of fresh fruits and vegetables.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Investment Comparison: C.H. Robinson vs. GXO Logistics
- C.H. Robinson Financial Overview: In FY 2025, C.H. Robinson reported nearly $16.2 billion in revenue, an 8% decline year-over-year, yet net income reached approximately $587 million, indicating resilience and improved profitability amidst challenges.
- GXO Logistics Growth Potential: GXO Logistics achieved approximately $13.2 billion in revenue for FY 2025, a 12.5% increase, but net income was only $32 million, resulting in a mere 0.2% net margin, highlighting significant operational cost pressures.
- Risk Analysis: C.H. Robinson faces technology and cybersecurity risks, relying on third-party transport providers, which could lead to losses if partners fail; conversely, GXO must navigate integration challenges from rapid growth and rising labor costs.
- Valuation Comparison: C.H. Robinson's forward P/E ratio stands at 31.1x, significantly higher than GXO's 16.5x, reflecting its superior profitability and cash flow generation, despite GXO appearing cheaper based on future earnings and sales estimates.
See More
Investment Comparison: C.H. Robinson vs. GXO Logistics
- Financial Performance Comparison: C.H. Robinson reported approximately $16.2 billion in revenue for FY 2025, an 8% decline year-over-year, yet net income reached $587 million, showcasing strong profitability and cash flow generation, reflecting the advantages of its asset-light model.
- Market Risk Analysis: C.H. Robinson faces significant risks from technology and cybersecurity, as failure to protect its operating systems could lead to customer losses, and its reliance on third-party transportation providers adds additional challenges in a highly competitive market.
- GXO Logistics Growth Potential: GXO Logistics achieved approximately $13.2 billion in revenue for FY 2025, a 12.5% increase, but reported only $32 million in net income, with a net margin of just 0.2%, indicating high operational cost pressures amid rapid expansion.
- Industry Competitive Landscape: GXO Logistics relies on fixed-price contracts, which may hinder its ability to pass costs onto customers, while competing against giants like Amazon in the tech-driven warehousing space, where failure to innovate could jeopardize its market position.
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- Inflation Data Impact: The US May Consumer Price Index rose by 4.2% year-over-year, matching expectations and marking the fastest increase in three years, while the core CPI rose by 2.9%, also in line with forecasts, easing inflation concerns and limiting downside pressure on Treasury yields.
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See More
Investment Comparison: C.H. Robinson vs. GXO Logistics
- C.H. Robinson Financial Overview: In FY 2025, C.H. Robinson reported nearly $16.2 billion in revenue, an 8% decline year-over-year, yet net income reached approximately $587 million, indicating resilience and improved profitability amidst challenges.
- GXO Logistics Growth Potential: GXO Logistics achieved approximately $13.2 billion in revenue for FY 2025, a 12.5% increase, but net income was only $32 million, resulting in a mere 0.2% net margin, highlighting significant operational cost pressures.
- Risk Analysis: C.H. Robinson faces technology and cybersecurity risks, relying on third-party transport providers, which could lead to losses if partners fail; conversely, GXO must navigate integration challenges from rapid growth and rising labor costs.
- Valuation Comparison: C.H. Robinson's forward P/E ratio stands at 31.1x, significantly higher than GXO's 16.5x, reflecting its superior profitability and cash flow generation, despite GXO appearing cheaper based on future earnings and sales estimates.
See More
Investment Comparison: C.H. Robinson vs. GXO Logistics
- Financial Performance Comparison: C.H. Robinson reported approximately $16.2 billion in revenue for FY 2025, an 8% decline year-over-year, yet net income reached $587 million, showcasing strong profitability and cash flow generation, reflecting the advantages of its asset-light model.
- Market Risk Analysis: C.H. Robinson faces significant risks from technology and cybersecurity, as failure to protect its operating systems could lead to customer losses, and its reliance on third-party transportation providers adds additional challenges in a highly competitive market.
- GXO Logistics Growth Potential: GXO Logistics achieved approximately $13.2 billion in revenue for FY 2025, a 12.5% increase, but reported only $32 million in net income, with a net margin of just 0.2%, indicating high operational cost pressures amid rapid expansion.
- Industry Competitive Landscape: GXO Logistics relies on fixed-price contracts, which may hinder its ability to pass costs onto customers, while competing against giants like Amazon in the tech-driven warehousing space, where failure to innovate could jeopardize its market position.
See More
US Stocks Plunge Amid Rising Geopolitical Tensions
- Market Decline: On Wednesday, the S&P 500 Index fell by 1.62%, the Dow Jones Industrial Average dropped by 1.87%, and the Nasdaq 100 Index decreased by 1.98%, indicating a significant market reaction to rising geopolitical tensions that undermined investor confidence.
- Oil Price Surge: Crude oil prices rose over 2% due to escalating tensions in the Middle East, which not only exacerbated losses in stocks and bonds but also pressured airline and trucking companies, highlighting the profound impact of energy price fluctuations on the overall market.
- Stable Inflation Data: The US May Consumer Price Index rose 4.2% year-over-year, in line with expectations, while core CPI increased by 2.9%, alleviating some inflation concerns, although rising oil prices may reignite scrutiny over inflationary pressures.
- Tech Stock Retreat: Chipmakers and AI infrastructure stocks experienced significant declines, with Nvidia and Tesla both dropping over 3%, reflecting a waning confidence in tech stocks that could influence future investment strategies.
See More
US Stocks Decline as Chip and Airline Stocks Weigh Down Market
- Market Decline: The S&P 500 Index fell by 0.61%, the Dow Jones Industrial Average dropped by 0.88%, and the Nasdaq 100 Index decreased by 0.80%, indicating investor concerns over chipmakers and AI infrastructure stocks, which reflects a weakening confidence in technology stocks.
- Inflation Data Impact: The US May Consumer Price Index rose by 4.2% year-on-year, meeting expectations and marking the fastest increase in three years, which, while easing inflation concerns, still affects market sentiment and leads to more cautious expectations regarding future interest rate policies.
- Pressure on Airlines and Transport: Trucking companies are under pressure as Amazon expanded its LTL freight service, with Old Dominion Freight Line and FedEx Freight down over 4% and 3% respectively, indicating growing concerns about increased competition in the transportation sector.
- Energy Stocks Rise: WTI crude oil prices increased by over 1%, boosting energy producers like Devon Energy by more than 5%, suggesting that despite overall market weakness, the energy sector's profit outlook remains optimistic amid geopolitical tensions.
See More
US Stocks Decline as Inflation Data Eases Market Concerns
- Market Decline: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average dropped by 0.38%, and the Nasdaq 100 index decreased by 0.28%, indicating that weakness in technology stocks is dragging down the broader market as investors rotate out of the sector.
- Inflation Data Impact: The US May Consumer Price Index rose by 4.2% year-over-year, matching expectations and marking the fastest increase in three years, while the core CPI rose by 2.9%, also in line with forecasts, easing inflation concerns and limiting downside pressure on Treasury yields.
- Pressure on Trucking Sector: Amazon's expansion of its LTL freight service to all US destinations has led to significant declines in trucking companies, with ArcBest and Old Dominion Freight Line down over 7% and 6% respectively, reflecting market worries about the trucking industry's outlook.
- Energy Stocks Strength: WTI crude oil prices increased by more than 1%, boosting energy producers like Devon Energy, which rose over 4%, indicating that the energy sector retains resilience amid geopolitical tensions.
See More
