WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ZTO Express (Cayman) Inc generates 281% more annual revenue ($51.49B vs $13.50B). ZTO leads profitability with a 17.9% profit margin vs 1.0%. ZTO appears more attractively valued with a PEG of 1.18. ZTO earns a higher WallStSmart Score of 70/100 (B-).

GXO

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 4.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.36

ZTO

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 8.0Quality: 7.5
Piotroski: 5/9Altman Z: 3.42
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for GXO.

ZTOUndervalued (+64.5%)

Margin of Safety

+64.5%

Fair Value

$70.14

Current Price

$22.23

$47.91 discount

UndervaluedFair: $70.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GXO1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

ZTO5 strengths · Avg: 8.4/10
Altman Z-ScoreHealth
3.4210/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
22.0%8/10

Revenue surging 22.0% year-over-year

Free Cash FlowQuality
$2.79B8/10

Generating 2.8B in free cash flow

Areas to Watch

GXO4 concerns · Avg: 2.8/10
Return on EquityProfitability
4.5%3/10

ROE of 4.5% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

P/E RatioValuation
44.4x2/10

Premium valuation, high expectations priced in

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. Revenue growth of 10.8% demonstrates continued momentum. PEG of 1.35 suggests the stock is reasonably priced for its growth.

Bull Case : ZTO

The strongest argument for ZTO centers on Altman Z-Score, P/E Ratio, Price/Book. Profitability is solid with margins at 17.9% and operating margin at 19.2%. Revenue growth of 22.0% demonstrates continued momentum.

Bear Case : GXO

The primary concerns for GXO are Return on Equity, Profit Margin, Operating Margin. A P/E of 44.4x leaves little room for execution misses. Debt-to-equity of 2.01 is elevated, increasing financial risk.

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 growth play — different risk/reward profiles.

GXO carries more volatility with a beta of 1.62 — expect wider price swings.

ZTO is growing revenue faster at 22.0% — sustainability is the question.

ZTO generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

ZTO scores higher overall (70/100 vs 53/100), backed by strong 17.9% margins and 22.0% revenue growth. Both earn "Strong Buy" and "Buy" 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) is a leading provider of contract logistics services, specializing in supply chain management and tailored logistics solutions for sectors such as e-commerce, retail, and consumer goods. The company harnesses an extensive global network and innovative technologies to optimize operational efficiency and scalability for its clients, while maintaining a strong commitment to sustainability. With the rising need for sophisticated warehousing and fulfillment capabilities, GXO is well-positioned to address market challenges, guided by an experienced management team and strategic partnerships that support sustainable long-term growth and enhance 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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