WallStSmart

GXO Logistics Inc (GXO)vsZTO Express (Cayman) Inc (ZTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ZTO Express (Cayman) Inc generates 273% more annual revenue ($49.10B vs $13.18B). ZTO leads profitability with a 18.5% profit margin vs 0.2%. ZTO appears more attractively valued with a PEG of 1.27. ZTO earns a higher WallStSmart Score of 72/100 (B).

GXO

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 4.0Value: 5.3Quality: 3.3
Piotroski: 1/9Altman Z: 1.49

ZTO

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 8.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GXOUndervalued (+77.4%)

Margin of Safety

+77.4%

Fair Value

$280.63

Current Price

$56.22

$224.41 discount

UndervaluedFair: $280.63Overvalued
ZTOUndervalued (+81.1%)

Margin of Safety

+81.1%

Fair Value

$131.93

Current Price

$25.14

$106.79 discount

UndervaluedFair: $131.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GXO1 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

ZTO5 strengths · Avg: 8.6/10
Free Cash FlowQuality
$11.97B10/10

Generating 12.0B in free cash flow

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

Areas to Watch

GXO4 concerns · Avg: 3.3/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Return on EquityProfitability
1.2%3/10

ROE of 1.2% — below average capital efficiency

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

ZTO0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : GXO

The strongest argument for GXO centers on Price/Book.

Bull Case : ZTO

The strongest argument for ZTO centers on Free Cash Flow, Debt/Equity, P/E Ratio. Profitability is solid with margins at 18.5% and operating margin at 22.3%. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : GXO

The primary concerns for GXO are PEG Ratio, Return on Equity, Profit Margin. A P/E of 200.8x leaves little room for execution misses. Thin 0.2% margins leave little buffer for downturns.

Bear Case : ZTO

No major red flags identified for ZTO, but monitor valuation.

Key Dynamics to Monitor

GXO profiles as a value stock while ZTO is a mature play — different risk/reward profiles.

GXO carries more volatility with a beta of 1.68 — expect wider price swings.

ZTO is growing revenue faster at 12.3% — sustainability is the question.

ZTO generates stronger free cash flow (12.0B), providing more financial flexibility.

Bottom Line

ZTO scores higher overall (72/100 vs 47/100), backed by strong 18.5% margins and 12.3% revenue growth. GXO offers better value entry with a 77.4% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

GXO Logistics Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

GXO Logistics Inc (GXO) stands as a premier provider of contract logistics services, offering comprehensive supply chain management and logistics solutions tailored to various industries, including e-commerce, retail, and consumer goods. Leveraging an expansive global network and cutting-edge technologies, GXO enhances operational efficiency and scalability for clients, all while prioritizing sustainability in its practices. With a growing demand for advanced warehousing and fulfillment solutions, the company is strategically positioned to navigate market complexities, driven by a seasoned management team and robust partnerships that foster consistent long-term growth and shareholder value.

ZTO Express (Cayman) Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · China

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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