LSTR vs RXO: Which Is the Better Buy in 2026?
Last updated October 2026
Short answer
LSTR and RXO are similarly sized, but LSTR trades noticeably cheaper on forward earnings (22.40x vs 43.89x): the market is paying up for RXO's profile and pricing LSTR more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
LSTR vs RXO: the tie-breaker metrics
Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | LSTR | RXO | What it tells you |
|---|---|---|---|
| Market cap | $5.83B | $4.72B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 22.40 | 43.89 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Beta | 0.89 | 1.99 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 47% of range | 93% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 6.96 | 3.13 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: LSTR is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how LSTR and RXO affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. LSTR and RXO share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined LSTR and RXO exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Landstar System (LSTR) do?
Landstar System is a North American asset-light truckload and specialized freight company. Instead of owning a large fleet, it runs an outsourced network: more than 1,100 independent commission sales agents originate and manage freight, while capacity is provided by roughly 11,000 leased owner-operator truckers (called business capacity owners, or BCOs) plus a vetted database of third-party carriers used for overflow. Agents earn commissions tied to the gross profit on each load, and truckers keep most of the linehaul revenue, which converts fixed costs into variable costs and lets Landstar stay profitable and cash-generative across freight cycles. The company specializes in van, flatbed, heavy haul and project cargo, and is particularly strong in flatbed and oversized loads, supported by its Galaxy transportation management system and internal load board.
What does RXO (RXO) do?
RXO, Inc. was created in November 2022 when XPO spun off its asset-light North American brokered transportation business. The company does not own tractors or trailers. It sells capacity to shippers, buys it from independent carriers, and keeps the spread, which is why revenue is large (~$6.1 billion trailing twelve months) and margins are thin. Truck brokerage is roughly 74% of revenue, with two complementary businesses making up the rest: Last Mile (~18%), which delivers heavy goods like appliances and furniture into homes, and Managed Transportation (~8%), which runs outsourced freight departments for large shippers under multi-year contracts. In September 2024 RXO paid about $1.025 billion for Coyote Logistics from UPS, roughly doubling brokerage volume and moving RXO into the top three North American truck brokers behind C.H. Robinson and Total Quality Logistics.
LSTR vs RXO: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- LSTR drivers: Asset-light, high-return model; Freight-cycle recovery leverage.
- RXO drivers: The C.H. Robinson deal sets the value; Truckload capacity leaving the market.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Landstar is highly cyclical: its revenue and profits track truckload volumes and spot rates, which fell sharply during the 2023 to 2025 freight recession and can weaken again in an economic slowdown. For RXO, the main risk now is the deal itself.
LSTR or RXO: which should you pick?
LSTR vs RXO: the full fundamentals
LSTR. Landstar's trailing P/E near 43 still reflects earnings depressed by the freight recession, while the forward multiple of about 22 assumes EPS roughly doubles from the trailing level as the recovery continues. The balance sheet is strong, with about $348 million in cash and modest debt, supporting the dividend and buybacks. The 16 analysts covering it rate it a hold with a mean target of about $188, and because reported earnings swing widely with the cycle, cycle context matters more than a single P/E snapshot.
RXO. Earnings multiples no longer explain the RXO share price. With a signed sale to C.H. Robinson, the stock trades close to the value of $17.25 in cash plus about 0.0856 C.H. Robinson shares, about $28.40 when C.H. Robinson is at $130, against an October 16, 2026 close of about $28.30. Any gap between the two is the market's price for the time to closing in the first half of 2027 and the risk that the deal does not complete.
Headline figures (approximate, October 2026): LSTR shows revenue (ttm) ~$5.0 billion (Q2 2026 ~$1.43B, up ~18% YoY), net income (ttm) ~$132 million (EPS ~$3.86), q2 2026 eps ~$1.44 vs ~$1.48 estimate, operating / net margin ~4.6% / ~2.6%; RXO shows deal terms (c.h. robinson) $17.25 cash + ~0.0856 CHRW shares per RXO share; ~$5.8B total; close expected 1H 2027, revenue (ttm) ~$6.1B, q2 2026 revenue (yoy) ~$1.77B (+25%), net income (ttm) ~-$105M (~-$0.62 per share).
The bottom line: LSTR vs RXO
LSTR and RXO are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined LSTR and RXO exposure against your real portfolio. It is not an investment adviser.
Wondering how LSTR or RXO fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Landstar System with AI
Connect the broker you already use and ask Walnut's AI how LSTR fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between LSTR and RXO?
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Landstar System is a North American asset-light truckload and specialized freight company. RXO, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is LSTR or RXO the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, LSTR or RXO?
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On forward P/E (as of October 2026), LSTR trades at 22.40x and RXO at 43.89x, so LSTR is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both LSTR and RXO?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of LSTR vs RXO?
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LSTR: Landstar is highly cyclical: its revenue and profits track truckload volumes and spot rates, which fell sharply during the 2023 to 2025 freight recession and can weaken again in an economic slowdown. The stock often trades at a premium price-to-earnings multiple (a trailing P/E near 43 in October 2026, on earnings still well below the 2022 peak), so any stall in the freight recovery can pressure the shares. The model depends on retaining productive independent agents and owner-operator capacity, both of which can leave for competitors offering better economics. Freight fraud and cargo theft are industry-wide problems that have cost Landstar in the past and remain an operational and reputational risk. Finally, competition is intense from larger and digital brokers such as C.H. Robinson, RXO and TQL, plus asset-backed carriers, which can compress margins during demand slumps. Margins remain thin, with a net margin near 2.6% on trailing revenue, so small changes in rates or costs move earnings sharply. RXO: The main risk now is the deal itself. A merger of the largest and third-largest North American truck brokers can draw antitrust scrutiny, and closing depends on the conditions in the merger agreement, so a delay or a failed deal would leave RXO trading on its own fundamentals again, likely well below the current price. Because about 43% of the consideration is C.H. Robinson stock, RXO holders are exposed to C.H. Robinson's share price, which fell nearly 11% on the announcement and drew a Deutsche Bank downgrade in October 2026 over leverage from the roughly $3 billion of new debt. The legal question has not gone away either: on 14 May 2026 the Supreme Court ruled unanimously in Montgomery v. Caribe Transport II that state negligent-hiring claims against freight brokers are not preempted by federal law, and a jury subsequently returned a roughly $604 million verdict involving C.H. Robinson, so the combined company would carry that exposure at greater scale. On a standalone basis RXO is still loss-making, with a trailing net loss of about $105 million, about $728 million of debt and only about $15 million of cash at mid-2026.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell LSTR or RXO; figures are approximate and dated (as of October 2026). Verify current data before investing.