The Logistics Industry: An Analysis
The global logistics industry is responsible for the movement of goods around the world. It is a vital part of the global economy, and its success is dependent on the efficient and reliable transportation of goods. The industry has been growing in recent years, due to the increase in global trade. This has led to a demand for more efficient and reliable logistics services. The industry is expected to continue to grow in the future, as the global economy expands.
The logistics industry is made up of a number of different players, from the giant multinational corporations that own the ships and planes, to the smaller companies that move goods around on the ground. In between these two extremes are the freight forwarders, who act as the middlemen, coordinating the movement of goods and ensuring that they arrive at their destination on time.
According to an industry analysis report by a top-rated American market research company, Expert Market Research, the global logistics industry was valued at $9.5 trillion in 2021 and is projected to grow at a compound annual growth rate of 5.7% through 2027, attaining a value of $13.3 trillion by the end of the forecasted period.
There are a number of trends that are impacting the global logistics industry. One of the most notable is the rise of e-commerce and the corresponding increase in demand for last-mile delivery services. This has led to a number of new players entering the market, as well as a number of traditional logistics providers expanding their operations to include last-mile delivery services. Another trend that is having an impact on the logistics industry is the increasing focus on sustainability. This is leading to a number of initiatives aimed at reducing the carbon footprint of the logistics sector. For example, many logistics providers are pouring hefty investments into electric vehicles and green technologies. Furthermore, the technological advancements in disruptive technologies such as artificial intelligence, machine learning, IoT, and Big Data are further fueling the growth and revolutionizing the logistics industry.
According to a market analysis report by Grand View Research, the U.S. retail logistics market attained a value of $43 billion in 2021 and is projected to grow at a compound annual growth rate of 11.0% through 2030 and reach a value of $109.3 billion by the end of the forecasted period. The conventional retail logistics segment held the upper hand over the e-commerce retail logistics segment and held a 57.3% market share of the U.S. logistics market in 2021. The conventional retail logistics segment is expected to remain the dominant segment of the two through 2030.
The most prominent players in the U.S. logistics industry include J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT), FedEx Corporation (NYSE:FDX), and United Parcel Service, Inc. (NYSE:UPS). This article will discuss these companies, among others, in detail.
Photo by Shaah Shahidh on Unsplash
Our Methodology
To determine the top logistics companies USA, we reviewed multiple industry analysis reports published by credible market research agencies. We identified the companies that appeared at the top and filtered out the 15 best companies of them, based on their history in the industry, market position, and competitive advantages over peers. These companies are ranked according to their market cap, from lowest to highest.
Top Logistics Companies In USA
15. Radiant Logistics, Inc. (NYSE:RLGT)
Market Cap as of October 31: $300.20 Million
Number of Hedge Fund Holders: 13
Radiant Logistics, Inc. (NYSE:RLGT) is a leading provider of third-party logistics and multi-modal transportation services. Through its network of over 100 locations across the world, the company offers a broad range of services that include domestic and international freight forwarding, truckload brokerage, intermodal services, warehousing, and value-added services. Radiant Logistics, Inc. is committed to providing its customers with a single point of contact to manage all their transportation needs, whether it is one shipment or multiple shipments across multiple modes, and is among the top logistics companies in USA.
Radiant Logistics, Inc. has numerous competitive advantages over its peers. The company has a large and diversified customer base, which provides it with a steady stream of revenue. Radiant Logistics, Inc. has a strong network of domestic and international partners, which gives it the ability to offer its customers a wide range of services. The company has a proven track record of success, which gives it the confidence of its customers and partners. As of October 31, Radiant Logistics, Inc. is worth roughly $300 million on the open market and is poised to grow its market share as the logistics industry expands.
As of June 30, Royce & Associates is the most prominent shareholder in Radiant Logistics, Inc. and has stakes worth $8.1 million in the company.
Some of the largest logistics companies in USA by market cap include J.B. Hunt Transport Services, Inc., FedEx Corporation, and United Parcel Service, Inc..
14. Universal Logistics Holdings, Inc. (NASDAQ:ULH)
Market Cap as of October 31: $840.88 Million
Number of Hedge Fund Holders: 10
Universal Logistics Holdings, Inc. (NASDAQ:ULH) is a leading provider of transportation and logistics services. The company offers a comprehensive suite of services, including truckload, intermodal, warehousing, and logistics management. Universal Logistics Holdings, Inc. has been in business for over 85 years and has a wealth of experience in the transportation and logistics industry. The company is one of the largest logistics services providers in North America and, as of October 31, is worth $840.8 million.
Universal Logistics Holdings, Inc. has a strong financial position and diversified business model and is expected to capture further market share as the logistics industry booms. The company has free cash flows of $39.6 million and its shares have appreciated by 71% year to date, as of October 31.
As of June 30, Royce & Associates is the top investor in Universal Logistics Holdings, Inc. and owns roughly 202,000 shares of the company. The fund’s stakes are valued at $5.5 million.
13. Hub Group, Inc. (NASDAQ:HUBG)
Market Cap as of October 31: $2.59 Billion
Number of Hedge Fund Holders: 18
Hub Group, Inc. (NASDAQ:HUBG) is a leading provider of intermodal, truck brokerage, and logistics services. The company offers its customers a broad range of transportation and logistics solutions, including intermodal, truckload, less than truckload, dedicated trucking, logistics management, and value-added services. Hub Group, Inc. is headquartered in Illinois and has offices and operations throughout North America. The company is among the top logistics companies in USA and, as of October 31, has a market capitalization of $2.59 billion.
On August 4, Cowen analyst Jason Seidl raised his price target on Hub Group, Inc. to $119 from $109 and maintained an Outperform rating on the shares.
Hub Group, Inc. has several competitive advantages in the marketplace. The company has been in business since 1971 and has a long track record of success. This gives it a level of credibility that many of its competitors cannot match. Furthermore, the company is one of the largest transportation management companies in North America. This gives it significant buying power and economies of scale. On August 22, Hub Group, Inc. bought a leading provider of third-party logistics, TAGG Logistics, for $103 million. Hub Group, Inc. currently has free cash flows of $87 million.
As of June 30, Fisher Asset Management is the leading investor in Hub Group, Inc. and has disclosed stakes of $61.5 million in the company.
12. Forward Air Corporation (NASDAQ:FWRD)
Market Cap as of October 31: $2.87 Billion
Number of Hedge Fund Holders: 16
Forward Air Corporation (NASDAQ:FWRD) is a leading provider of asset-light freight and logistics services. The company primarily operates in the United States and Canada. Forward Air Corporation has two business divisions: Expedited Freight and Intermodal. The company has been in the air freight and logistics business for well over 30 years and is one the top logistics companies in USA.
Forward Air Corporation has a strong and diversified customer base. The company is a leader in the high-growth airfreight market and has a well-established nationwide network. As of October 31, Forward Air Corporation is worth $2.87 billion on the open market and is poised to capture further market share in the logistics industry.
On October 24, Jefferies analyst Stephanie Moore took coverage of Forward Air Corporation with a Buy rating and a $120 price target.
As of June 30, Ancora Advisors owns over 1.34 million shares of Forward Air Corporation and is the largest shareholder in the company. The fund’s stakes are estimated at $123.6 million.
11. Schneider National, Inc. (NYSE:SNDR)
Market Cap as of October 31: $3.99 Billion
Number of Hedge Fund Holders: 16
Schneider National, Inc. (NYSE:SNDR) is one of the largest trucking companies in the United States. Schneider National, Inc. offers a wide variety of services, including truckload, logistics, intermodal, and dedicated. Schneider National, Inc. is ranked among the top logistics companies in USA and, as of October 31, is worth $3.99 billion on the open market.
Schneider National, Inc. has a diversified business model, a large scale and scope of operations, and a strong financial position. The company’s business segments include truckload, intermodal, and logistics, which allows it to have multiple revenue streams. The company’s strong financial position provides it with the ability to invest in new technology and equipment, as well as to expand its operations into new markets. Schneider National, Inc. has free cash flows of $105.4 million.
On October 5, Stifel analyst Bert Subin revised his price target on Schneider National, Inc. to $29 from $31 and reiterated a Buy rating on the shares.
As of June 30, AQR Capital Management is the top investor in Schneider National, Inc. and has disclosed a stake of $72.5 million in the company.
10. Ryder System, Inc. (NYSE:R)
Market Cap as of October 31: $4.04 Billion
Number of Hedge Fund Holders: 24
Ryder System, Inc. (NYSE:R) is a global leader in providing transportation and logistics solutions. The company offers a complete range of services, including truck rental, fleet management, and supply chain management. Ryder Systems, Inc. has a long history of serving customers in a wide variety of industries, including retail, manufacturing, and healthcare. The company has a strong commitment to safety and customer service, and it is constantly innovating to meet the changing needs of its customers.
Ryder System, Inc. has a diversified business model and a vast global network. The company has over 800 locations across North America and is well-positioned for continued growth in the coming years. As of October 31, Ryder System, Inc. is worth $4 billion on the open market and is ranked among the top logistics companies in USA.
On September 28, Stifel analyst Bert Subin reiterated a Hold rating and his $90 price target on Ryder System, Inc.. As of October 31, the company’s shares have appreciated by 16% over the past six months.
As of June 30, HG Vora Capital Management is the top investor in Ryder System, Inc. and has disclosed a stake of $358.85 million in the company.
9. GXO Logistics, Inc. (NYSE:GXO)
Market Cap as of October 31: $4.33 Billion
Number of Hedge Fund Holders: 36
GXO Logistics, Inc. (NYSE:GXO) is a leading global provider of supply chain management and logistics solutions. The company offers a full range of services, including warehousing and distribution, supply chain solutions, and order fulfillment. GXO Logistics, Inc. has exposure to a variety of industries including e-commerce, omnichannel retail, consumer technology, food and beverage, industrial and manufacturing, and consumer packaged goods among others. GXO Logistics, Inc. ranks among the top logistics companies in USA and is worth roughly $4.3 billion on the open market, as of October 31.
On October 25, Jefferies analyst Stephanie Moore took coverage of GXO Logistics, Inc. with a Buy rating and a $70 price target.
As of June 30, Orbis Investment Management is the leading investor in GXO Logistics, Inc. and owns roughly 11 million shares of the company. The fund’s stakes are estimated at $477.3 million.
8. Landstar System, Inc. (NASDAQ:LSTR)
Market Cap as of October 31: $5.75 Billion
Number of Hedge Fund Holders: 23
Landstar System, Inc. (NASDAQ:LSTR) is a US-based provider of integrated transportation management solutions. The company offers a suite of services that include truckload, less-than-truckload, intermodal, air cargo, ocean cargo, and logistics management. The company has operations in the United States, Canada, Mexico, and international markets and is well-positioned to grow its market share in the logistics industry. As of October 31, Landstar System, Inc. is valued at $5.75 billion and is ranked among the top logistics companies in USA.
This October, Susquehanna analyst Bascome Majors raised his price target on Landstar System, Inc. to $150 from $147 and maintained a Neutral rating on the shares.
As of June 30, AQR Capital Management is the largest investor in Landstar System, Inc. and has stakes worth $74.95 million in the company.
Here is what Wedgewood Partners had to say about Landstar System, Inc. in its second-quarter 2022 investor letter:
“Landstar System, Inc. (NASDAQ:LSTR) reported +53% revenue growth during the quarter which drove over +60% growth in earnings per share. Despite the strong results over the past few quarters, the stock peaked back in November of 2021 as investors have begun trying to time the end of the economic cycle, using Landstar as a proxy for economic activity. We are less concerned about where we are in this particular macroeconomic cycle, not only because the market has already discounted a slowdown but also because the underinvestment in long-haul drivers has been a multi-decade phenomenon that will not likely be solved even if consumer demand normalizes over the next few quarters. We think Landstar should generate excess returns over time because it has been one of the few companies that has been steadily investing in drivers while there has not been a concomitant increase in competitive capacity.”
7. XPO Logistics, Inc. (NYSE:XPO)
Market Cap as of October 31: $5.95 Billion
Number of Hedge Fund Holders: 47
XPO Logistics, Inc. (NYSE:XPO) is a leading provider of transportation and logistics services. The company serves more than 50,000 customers and has more than 87,000 employees across 33 countries. XPO Logistics, Inc. provides a broad range of services, including transportation, warehousing, distribution, and logistics management. The company has exposure to various industries including retail, e-commerce, manufacturing, and food and beverage.
As of October 31, XPO Logistics, Inc. has a market capitalization of $5.95 billion and is expected to grow this figure owing to its scale and reputation in the logistics industry. The company has been in the business for over 20 years and is a trusted logistics partner for a variety of businesses. XPO Logistics, Inc. is ranked high among the top logistics companies in USA.
On October 25, Jefferies analyst Stephanie Moore started coverage of XPO Logistics, Inc. with a Buy rating and a $70 price target.
As of June 30, MFN Partners is the largest shareholder in XPO Logistics, Inc. and owns more than 11 million shares of the company. The fund’s stakes are estimated at $535.5 million.
In addition to XPO Logistics, Inc., some of the best-in-class names in the U.S. logistics industry include J.B. Hunt Transport Services, Inc., FedEx Corporation, and United Parcel Service, Inc..
6. Knight-Swift Transportation Holdings Inc. (NYSE:KNX)
Market Cap as of October 31: $7.71 Billion
Number of Hedge Fund Holders: 30
Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is an American trucking company and one of the largest trucking companies in the United States, with a fleet of over 20,000 trucks. Knight-Swift Transportation Holdings Inc. has four business divisions: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. The company’s services include irregular route, dedicated, refrigerated, dry van, cross-border transportation, and freight management, among others.
Knight-Swift Transportation Holdings Inc. has a strong presence in the United States, Mexico, and Canada, and is one of the top logistics companies in USA. As of October 31, Knight-Swift Transportation Holdings Inc. is worth more than $7.7 billion on the open market and is well-positioned to grow its market share in the years to come.
On October 20, KeyBanc analyst Todd Fowler revised his price target on Knight-Swift Transportation Holdings Inc. to $60 from $70 and maintained an Overweight rating on the shares.
As of June 30, AQR Capital Management is the leading shareholder in Knight-Swift Transportation Holdings Inc. and has disclosed a stake of $59.9 million in the company.
5. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
Market Cap as of October 31: $12.10 Billion
Number of Hedge Fund Holders: 26
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is a leading third-party logistics provider that offers a broad portfolio of logistics services through its network of offices and agents across the globe. The company has two business segments: North American Surface Transportation and Global Forwarding. C.H. Robinson Worldwide, Inc. has a century-long track record of delivering success in the logistics industry and is among the top logistics companies in USA.
As of October 31, C.H. Robinson Worldwide, Inc. has a market capitalization of $12 billion and has free cash flows of $143 million. On October 24, Jefferies analyst Stephanie Moore started coverage of C.H. Robinson Worldwide, Inc. with a Hold rating and a $100 price target.
As of June 30, First Eagle Investment Management owns over 10.6 million shares of C.H. Robinson Worldwide, Inc. and is the largest investor in the company. The fund’s stakes are valued at $1 billion.
4. Expeditors International of Washington (NASDAQ:EXPD)
Market Cap as of October 31: $16.00 Billion
Number of Hedge Fund Holders: 28
Expeditors International of Washington (NASDAQ:EXPD) is a leading global logistics company that provides air, ocean, and ground transportation, as well as warehousing and other logistics services to businesses and organizations around the world. The company has been operating in the space for over 40 years and has cemented its position and brand image in the logistics industry. Expeditors International of Washington is ranked high among the top logistics companies in USA, and as of October 31 is worth $16 billion on the open market.
In addition to having a proven track record of success and a strong history, Expeditors International of Washington has a global network of over 350 locations that span more than 100 countries. The company has a solid balance sheet and strong cash flow, which provides the company with the resources to invest in new growth opportunities. Expeditors International of Washington has free cash flows of $1.38 billion.
As of June 30, First Eagle Investment Management is the top shareholder in Expeditors International of Washington and has disclosed stakes of $252.93 million in the company.
3. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT)
Market Cap as of October 31: $17.71 Billion
Number of Hedge Fund Holders: 30
J.B. Hunt Transport Services, Inc. is a key North American transportation and logistics company. The company conducts business through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT).
J.B. Hunt Transport Services, Inc. has a long history of success in the transportation and logistics industry, dating back to 1961, and the company has since grown to become one of the largest transportation and logistics providers in North America, with over 33,000 employees and a fleet of over 21,000 trucks. J.B. Hunt Transport Services, Inc. is among the top logistics companies in USA and has a market cap of $17.7 billion, as of October 31.
On October 19, Baird analyst Garrett Holland reiterated an Outperform rating and his $185 price target on J.B. Hunt Transport Services, Inc..
As of June 30, Durable Capital Partners is the largest investor in J.B. Hunt Transport Services, Inc. and has a stake of $399 million in the company.
2. FedEx Corporation (NYSE:FDX)
Market Cap as of October 31: $41.70 Billion
Number of Hedge Fund Holders: 63
FedEx Corporation is among the largest and most popular logistics companies in the world. The company has a head count of over 547,000 employees and operates in more than 220 countries and territories across the globe. The company has a fleet of over 487 aircraft and more than 86,000 vehicles. As of October 31, FedEx Corporation is worth $41.70 billion on the open market and is ranked high among the top logistics companies in USA.
Some of the key competitive advantages of FedEx Corporation include its strong global brand, its large-scale operations, its efficient transportation network, and its customer-focused business model. These advantages allow the company to provide a high level of service to its customers and to maintain a strong market position. The company also has a strong cash position and has free cash flows of $2.87 billion. On October 24, Jefferies analyst Stephanie Moore took coverage of FedEx Corporation with a Hold rating and a $170 price target.
As of June 30, Southeastern Asset Management is the most prominent shareholder in FedEx Corporation and has disclosed a stake of $310.7 million in the company.
Here is what Longleaf Partners had to say about FedEx Corporation in its third-quarter 2022 investor letter:
“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was another top detractor in the quarter after a large earnings miss, driven by its overseas express business. The decline in Asia was primarily macro driven, while the European miss was a combination of macro and service quality issues related to the TNT integration. Management is cutting costs and taking steps to address the service issues. To the positive, the US Ground and Freight businesses reported solid earnings growth. These domestic businesses alone are generating almost $15 per share in free cash flow power and are worth $240, significantly more than FedEx’s share price today. In early October, the company announced an acceleration of its previously announced share repurchase program, a strong vote of confidence from management.”
1. United Parcel Service, Inc. (NYSE:UPS)
Market Cap as of October 31: $145.12 Billion
Number of Hedge Fund Holders: 38
Founded in 1907, United Parcel Service, Inc. has grown into one of the biggest logistics companies in the world. United Parcel Service, Inc. provides logistics services in over 220 countries and territories worldwide and has a fleet of 119,000 delivery vehicles. As of 2022, United Parcel Service, Inc. has over 534,000 employees worldwide.
On October 27, Deutsche Bank analyst Amit Mehrotra revised his price target on United Parcel Service, Inc. to $197 from $200 and maintained a Hold rating on the shares.
United Parcel Service, Inc. has over $10 billion in free cash flows, which allows it to make strategic investments in its operations and disruptive technologies that help the company provide optimized supply chain solutions to its customers. These technologies give United Parcel Service, Inc. a significant advantage in terms of operational efficiency over peers. As of October 31, United Parcel Service, Inc. has a market capitalization of $145 billion and is among the top logistics companies in USA.
As of June 30, Adage Capital Management is the largest shareholder in United Parcel Service, Inc. and has stakes of $139.6 million in the company.
Here is what Mayar Capital had to say about United Parcel Service, Inc. in its second-quarter 2022 investor letter:
“UPS has been a beneficiary of the pandemic-related shift to e-commerce. Revenues increased 15% in the year, with strong leverage in the business boosting operating profit by al- most 67%. Management is focusing on a ‘Better not Bigger’ strategy for the business and divested the UPS Freight business early in the year. Mean- while, the company is expected to increase distributions to shareholders in 2022, from both dividends and share buybacks.”
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