Landstar System vs XPO
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KIRA’s take AI analyst
I put Landstar System and XPO side by side, using each one’s latest annual report. Here is what stands out:
- XPO is the larger business, with $8.2B of revenue in fiscal 2025 against $4.7B for Landstar System, about 1.7 times as much.
- XPO grew revenue faster (1.1%, against −1.6%).
- XPO kept more of each dollar of sales as operating profit (8.0% operating margin, against 3.2%).
- Landstar System turned more of its sales into free cash flow (4.5% FCF margin, against 4.0%).
- Landstar System earned a higher return on the capital invested in it (24.9%, against 9.5%).
- Investors pay more for each dollar of XPO’s earnings: a P/E of 53.9x against 45.6x for Landstar System.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Landstar System
LSTR
4/10
FCF marginReturn on capitalNet debt / EBITDAShare count change
XPO
XPO
6/10
Revenue growth5-year growthOperating marginNet marginReturn on equityPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | LSTR FY25 | XPO FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.6B | $21.5B |
| Revenue | $4.7B | $8.2B |
| Free cash flow | $215M | $329M |
| Net income | $115M | $316M |
| Growth | ||
| Revenue growth | −1.6% | 1.1% |
| 5-year growth | 2.8% | 5.8% |
| Share count change | −2.3% | −0.8% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 3.2% | 8.0% |
| Net margin | 2.4% | 3.9% |
| FCF margin | 4.5% | 4.0% |
| Return on capital | 24.9% | 9.5% |
| Return on equity | 13.0% | 18.3% |
| Balance sheet | ||
| Net debt | −$375M | $3.2B |
| Net debt / EBITDA | −1.9x | 2.8x |
| Dividends and buybacks | $305M | $125M |
| Valuation & quality | ||
| P/E | 45.6x | 53.9x |
| Piotroski F-score | 4 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.