As supply chain issues are expected to continue, companies offering solutions in this space should see high demand for their services, particularly before the holiday season. Ryder System (NYSE:R) and XPO Logistics (NYSE:XPO) are two companies that should benefit from the rising demand for supply chain solutions. But which of these two stocks is a better buy now? Read more to find out.Ryder System, Inc. (R) operates as a logistics and transportation company worldwide. The company operates through three segments: Fleet Management Solutions; Supply Chain Solutions; and Dedicated Transportation Solutions. On the other hand, XPO Logistics, Inc. (XPO) provides supply chain solutions internationally. The company operates in two segments: Transportation and Logistics.
The COVID-19 pandemic has caused supply chain disruptions worldwide, severely affecting the production of goods and services. Moreover, Federal Reserve chair Jerome Powell said that the global supply chain issues could remain through 2022. So, supply chain solutions companies should witness a solid increase in demand for their services in the near term. According to a Future Market Insights report, the global supply chain management market is expected to grow at a CAGR of 11.4% between 2021 and 2031. Therefore, both R and XPO should benefit.
R has gained 13% over the past month, while XPO has returned 2.1%. Also, R’s 20.4% gain over the past six months is significantly higher than XPO’s negative return. Moreover, R is the clear winner with a 24.4% gain versus XPO’s negative return in terms of the past three months’ performance.