Head-To-Head Comparison: RXO (NYSE:RXO) vs. Marten Transport (NASDAQ:MRTN)

Marten Transport (NASDAQ:MRTN) and RXO (NYSE:RXO) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Earnings and Valuation

This table compares Marten Transport and RXO”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marten Transport	$883.65 million	1.35	$17.44 million	$0.17	86.24
RXO	$5.74 billion	0.61	-$100.00 million	($0.61)	-34.90

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Marten Transport and RXO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marten Transport	0	3	0	1	2.50
RXO	4	10	5	0	2.05

Marten Transport presently has a consensus price target of $16.00, indicating a potential upside of 9.14%. RXO has a consensus price target of $23.85, indicating a potential upside of 12.04%. Given RXO’s higher probable upside, analysts clearly believe RXO is more favorable than Marten Transport.

Risk & Volatility

Marten Transport has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, RXO has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Insider & Institutional Ownership

69.1% of Marten Transport shares are held by institutional investors. Comparatively, 92.7% of RXO shares are held by institutional investors. 22.6% of Marten Transport shares are held by company insiders. Comparatively, 0.8% of RXO shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Marten Transport and RXO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marten Transport	1.47%	1.65%	1.32%
RXO	-1.72%	-0.98%	-0.45%

Summary

Marten Transport beats RXO on 10 of the 15 factors compared between the two stocks.

About Marten Transport

Marten Transport, Ltd. operates as a temperature-sensitive truckload carrier for shippers in the United State, Mexico, and Canada. The company operates through four segments: Truckload, Dedicated, Intermodal, and Brokerage. The Truckload segment transports food and other consumer packaged goods that require a temperature-controlled or insulated environment, as well as dry freight; and regional short-haul and medium-to-long-haul full-load transportation services. The Dedicated segment offers customized transportation solutions for individual customers' requirements using temperature-controlled trailers, dry vans, and other specialized equipment. The Intermodal segment transports customers' freight utilizing its refrigerated containers and temperature-controlled trailers on railroad flatcars for portions of trips, as well as using tractors and contracted carriers. The Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for customers in temperature-controlled trailers and dry vans. As of December 31, 2023, the company operated a fleet of 3,349 tractors, that included 3,255 company-owned tractors and 94 tractors supplied by independent contractors. Marten Transport, Ltd. was founded in 1946 and is headquartered in Mondovi, Wisconsin.

About RXO

RXO, Inc. provides full truckload freight transportation brokering services. It also offers brokered services for managed transportation, last mile, and freight forwarding. The company was incorporated in 2022 and is based in Charlotte, North Carolina.