Booking (NASDAQ:BKNG) and XPO Logistics (NYSE:XPO) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.
Valuation & Earnings
This table compares Booking and XPO Logistics’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Booking | $14.53 billion | 5.97 | $4.00 billion | $92.59 | 22.38 |
| XPO Logistics | $17.28 billion | 0.43 | $422.00 million | $3.19 | 25.17 |
Booking has higher earnings, but lower revenue than XPO Logistics. Booking is trading at a lower price-to-earnings ratio than XPO Logistics, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Booking has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, XPO Logistics has a beta of 2.5, suggesting that its share price is 150% more volatile than the S&P 500.
Profitability
This table compares Booking and XPO Logistics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Booking | 29.05% | 67.17% | 20.58% |
| XPO Logistics | 2.31% | 13.87% | 3.17% |
Institutional and Insider Ownership
92.4% of Booking shares are owned by institutional investors. 0.2% of Booking shares are owned by company insiders. Comparatively, 18.7% of XPO Logistics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Booking and XPO Logistics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Booking | 0 | 16 | 11 | 1 | 2.46 |
| XPO Logistics | 0 | 5 | 8 | 0 | 2.62 |
Booking presently has a consensus price target of $2,108.70, suggesting a potential upside of 1.74%. XPO Logistics has a consensus price target of $82.31, suggesting a potential upside of 2.50%. Given XPO Logistics’ stronger consensus rating and higher probable upside, analysts plainly believe XPO Logistics is more favorable than Booking.
Summary
Booking beats XPO Logistics on 9 of the 15 factors compared between the two stocks.
Booking Company Profile
Booking Holdings Inc, formerly The Priceline Group Inc., is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands. Its other brands include KAYAK, Rentalcars.com and OpenTable, Inc. (OpenTable). As of December 31, 2016, Booking.com offered accommodation reservation services for over 1,115,000 properties in over 220 countries and territories on its various Websites and in over 40 languages, which included over 568,000 vacation rental properties (updated property counts were available on the Booking.com Website).
XPO Logistics Company Profile
XPO Logistics, Inc. provides transportation and logistics services in the United States, North America, France, the United Kingdom, Europe, and internationally. The company’s Transportation segment offers freight brokerage services comprising truck brokerage, intermodal, drayage, and expedite services; last mile services, primarily asset-light; density and day-definite regional, inter-regional, and transcontinental less-than-truckload freight services; full truckload services for transactional transportation of packaged goods, high cube products, and bulk goods; logistics services for domestic, cross-border, and international shipments; and managed transportation services. Its Logistics segment offers a range of contract logistics services, including value-added warehousing and distribution, e-commerce fulfillment, cold chain solutions, reverse logistics, packaging and labeling, factory support, aftermarket support, inventory management and personalization services; and engineered and customized solutions and supply chain optimization services; The company offers its services to customers in various industries, such as retail, e-commerce, food and beverage, consumer packaged goods. XPO Logistics, Inc. was founded in 1996 and is based in Greenwich, Connecticut.
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