Analyzing Hafnia (NYSE:HAFN) and XPO (NYSE:XPO)

Hafnia (NYSE:HAFN) and XPO (NYSE:XPO) are both transportation companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Valuation and Earnings

This table compares Hafnia and XPO”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hafnia	$3.04 billion	0.90	$793.28 million	$1.70	3.16
XPO	$8.07 billion	2.14	$189.00 million	$3.23	45.85

Hafnia has higher earnings, but lower revenue than XPO. Hafnia is trading at a lower price-to-earnings ratio than XPO, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hafnia and XPO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hafnia	53.44%	36.90%	22.38%
XPO	4.81%	30.36%	5.95%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hafnia and XPO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hafnia	0	0	2	0	3.00
XPO	0	1	15	0	2.94

Hafnia presently has a consensus price target of $8.25, indicating a potential upside of 53.49%. XPO has a consensus price target of $161.13, indicating a potential upside of 8.79%. Given Hafnia’s stronger consensus rating and higher possible upside, analysts plainly believe Hafnia is more favorable than XPO.

Insider & Institutional Ownership

97.7% of XPO shares are owned by institutional investors. 2.0% of XPO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

XPO beats Hafnia on 7 of the 13 factors compared between the two stocks.

About Hafnia

Hafnia Limited owns and operates oil product tankers in Bermuda. It operates through Long Range II, Long Range I, Medium Range (MR), Handy size, and Specialized segments. The company transports clean and dirty, refined oil products, vegetable oil, and easy chemicals to national and international oil companies, and chemical companies, as well as trading and utility companies; and owns and operates 200 vessels. It provides ship owning, ship-management, investment, management, corporate support, and agency office services. In addition, the company provides integrated shipping platform, including technical management, commercial and chartering services, pool management, and large-scale bunker desk services. Hafnia Limited is based in Hamilton, Bermuda.

About XPO

XPO, Inc. provides freight transportation services in the United States, rest of North America, France, the United Kingdom, rest of Europe, and internationally. The company operates in two segments, North American LTL and European Transportation. The North American LTL segment provides customers with less-than-truckload (LTL) services, such as geographic density and day-definite domestic services. This segment also offers cross-border U.S., Mexico, Canada, and the Caribbean, as well as engages in the operation of trailer manufacturing. The European Transportation segment offers dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, such as road-rail and road-short sea combinations. It provides its services to customers in various industries, such as industrial and manufacturing, retail and e-commerce, food and beverage, logistics and transportation, and consumer goods. The company was formerly known as XPO Logistics, Inc. and changed its name to XPO, Inc. in December 2022. XPO, Inc. was incorporated in 2000 and is based in Greenwich, Connecticut.