Purely based on historical performance, FedEx appears to be more attractive compared to UPS in the current crisis. Both the companies’ stocks have been more resilient through the crisis, thus far, and FedEx could see a larger upside if the health crisis abates, considering its revenue and EPS growth has been higher than UPS.
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How does FedEx compare in price to ups?
UPS is also more expensive in terms of forward PEG ratio (2.67x versus 1.49x) and trailing 12-month price/sales (1.95x versus 1.01x). Also, in terms of trailing 12-month price to cash flow, UPS’s 14.51x is 43.7% more expensive than FDX’s 10.1x. Thus, FDX is the more affordable stock. POWR Ratings
Should you buy FedEx stock over ups?
- An in-principle agreement between FedEx and the union marks the end of negotiations with the major logistics companies operating in Australia.
- Bargaining led by the Transport Workers Union (TWU) has affected over 20,000 transport workers.
- The rolling strikes have also halted parcel deliveries in a year that has seen an explosion in e-commerce.
What is the difference between FedEx vs ups?
UPS
- Delivery Services. FedEx Express is the overnight courier service, with next day delivery within the US and time-guaranteed international service.
- Other Services. FedEx Office offers other business services to customers, including copying, digital printing, Internet access, computer rentals, and signs and graphics.
- Shipping Cost. ...
- Sales and Market Share
What is the market share of FedEx and ups?
UPS’s competitive advantage lies in its freight and ground shipping services. FedEx specializes in next-day air service deliveries, while the USPS focuses on residential mail and small package delivery. As of 2015, UPS maintained 57% market share in the domestic courier and delivery services industry, while FedEx holds 25% market share ...
Which is better FedEx or UPS stock?
Overall, FDX shares are currently cheaper relative to UPS shares. However, UPS has a notably higher dividend yield and is still trading at a discount relative to the general market. As shown in the charts, FedEx shares have struggled to keep pace with UPS shares.
Why is FedEx a good stock to buy?
FedEx has boosted its capital returns to holders in the current fiscal year, buying back more than $2 billion of stock, or 3% of the shares outstanding. It pays a 1.5% dividend, less than half the 3.2% dividend at UPS, which has a payout ratio of 50%.
Is UPS a good stock to buy 2021?
Despite the uncertainties related to coronavirus, UPS generated impressive free cash flow of $5.1 billion in 2020. In 2021, the amount more than doubled to $10.9 billion. Robust free-cash-flow generation by UPS is a major positive and is leading to an increase in shareholder-friendly activities.
Is FedEx overvalued?
In summary, the stock of FedEx (NYSE:FDX, 30-year Financials) gives every indication of being significantly overvalued. The company's financial condition is poor and its profitability is strong. Its growth ranks worse than 74% of the companies in Transportation industry.
Is FedEx undervalued?
The key takeaway here is that FedEx is undervalued relative to its earnings and outlook. FedEx is trading at only 12X its earnings consensus while UPS and Expeditors International both trade near 17.5X theirs.
Will UPS stock go up 2022?
As per S&P Capital IQ, UPS is expected to generate annual ROEs and ROAs in excess of 40% and 15%, respectively for the next five years. UPS also has plans to return more capital to the company's shareholders. It increased its quarterly dividend per share from $1.02 in Q4 2021 to $1.52 in Q1 2022.
Is UPS a buy or hold?
Out of 19 analysts, 6 (31.58%) are recommending UPS as a Strong Buy, 4 (21.05%) are recommending UPS as a Buy, 8 (42.11%) are recommending UPS as a Hold, 0 (0%) are recommending UPS as a Sell, and 1 (5.26%) are recommending UPS as a Strong Sell. What is UPS's earnings growth forecast for 2022-2024?
What is the future of UPS?
The COVID-19 pandemic coincided with UPS specifically targeting healthcare as a growth opportunity, and that focus will continue in the future....Join Over 1 Million Premium Members Receiving…UPS Guidance2023 Est2020Revenue 2023$98 billion to $102 billion$84.6 billion2 more rows•Jun 21, 2021
How much did FedEx stock change in 2019?
FedEx stock went from $77 at the end of 2009 to $150 at the end of 2019, representing a change of 96%. During the same time period, the United Parcel Service went from $42 to $116 representing a change of 175%. This implies that Fedex stock grew at 0.5x the rate of United Parcel Service.
What was the FedEx revenue growth rate in 2014?
Fedex 2014-19 annualized revenue growth of 9% is 2.3x that of the 2014-19 UPS’ annualized revenue growth rate of 4.9%.
How much has FedEx declined?
FedEx has declined by close to -14% since early February after the WHO declared the Coronavirus a global health emergency, compared to a -4% decline for UPS stock. FedEx has seen higher average revenue growth of 9% compared to 5% for UPS between 2014 and 2019.
Is FedEx less leveraged than UPS?
FedEx is less leveraged compared to UPS, and both the companies have enough cash from operations to manage their near term interest expenses in this time of crisis. Moreover, FedEx’s P/E ratio is lower compared to its own historical P/E ratio, as well as that of UPS.
Is FedEx flying out of China?
The company’s management also stated that it is now flying in and out of China in line with its normal flight schedules.
Is FedEx stock declining?
FedEx stock started declining in 2018, after Amazon’s own logistics business started impacting FedEx’s business. In 2019, FedEx and Amazon parted ways, while UPS still delivers for Amazon, and as a customer Amazon accounted for 12% of UPS’ total revenues in 2019.
How much did FedEx grow in 2020?
1. Revenue Growth. Between fiscal 2017 and fiscal 2020 (fiscal year ends in May), FedEx’s Revenues grew by about 15%, rising from around $60.3 billion to $69.2 billion, partly driven by its TNT acquisition. On the other hand, UPS’ Revenues grew by about 28% between 2017 and 2020, rising from around $65.9 billion to $84.6 billion, ...
How much did UPS revenue grow in 2017?
On the other hand, UPS’ Revenues grew by about 28% between 2017 and 2020, rising from around $65.9 billion to $84.6 billion, implying UPS’ revenues have grown at a faster pace over the recent years.
Is FedEx weighing down its earnings?
While both the companies have benefited from rapid growth in e-commerce, FedEx is partly being weighed down given the impact on its earnings from challenges in integration with TNT, which it acquired back in 2016.
Is FDX stock going to gain more in 2020?
While FDX stock looks like it can gain more, 2020 has also created many pricing discontinuities that can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for UPS vs. Sprouts Farmers Market.
What is UPS value grade?
UPS has a Value Grade of D , based on its score of 65, which is considered to be in the expensive range. The Value Grade is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-Ebitda (EV/Ebitda) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. UPS has a score of 43 for the price-to-sales ratio, 76 for the price-to-free-cash-flow ratio and 96 for the price-to-book-value ratio (remember, the lower the score the better for value).
What is the quality score of UPS?
UPS has a quality score of 88, which is very strong and translates to a Quality Grade of A. The company’s return on assets is 7.5% and its gross income to assets is 101.5%, which contribute to its very strong Quality Grade.
What is a B grade for FedEx?
The company has a B grade when it comes to price momentum based on the weighted four-quarter relative strength. Momentum is based on the price change of a stock over a specified period relative to all other stocks. FedEx has a strong A+ Growth Grade of B, which looks at growth in sales, diluted earnings per share from continuing operations and operating cash. The company saw sales increase by over 13.3% for its latest quarter versus one year ago.
What is A+ stock grade?
AAII’s A+ Stock Grades is a stock-grading system based on percentile rankings of multiple key metrics within five investment factors: value, growth, momentum, earnings estimate revisions and quality. The A to F grades on each factor give summary ratings on a company’s fundamentals.
What is FedEx FDX?
FedEx FDX +0.4% provides air express and ground package delivery services to residential and business locations globally, as well as truck freight and logistics services. The company provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively under the FedEx brand. Its segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services.
Is FedEx a positive rating?
FedEx has a positive A+ Estimate Revisions Grade of B, which is based on the magnitude of a company’s last two earnings surprises, using the SUE (standardized unexpected earnings) score and the percentage change over the last month and last three months in the consensus estimate for the current fiscal year.
Why is UPS so much better than FedEx?
Even more importantly, UPS is much better at generating free cash flow from its earnings.
Who is the CEO of UPS?
New CEO Carol Tome has wasted no time in making it clear that improving margins and FCF generation are her key goals. For example, Tome told investors to pencil in some $4 billion in capital expenditures for 2021, a large drop from the $5.6 billion in such outlays expected in 2020. On UPS' last earnings call in late October, she promised that in the near future, she would outline her plans to improve margins in 2021.
Why is ecommerce putting pressure on earnings?
This is partly a consequence of a shift in the mix of what they ship toward lower-margin business-to-consumer (B2C) deliveries. That trend was accelerated in 2020 due to a combination of stay-at-home measures, social-distancing decisions, and a slump in the industrial economy. Nevertheless, the underlying pressures are still there.
Does UPS have a discount?
This point is highlighted when looking at the fact that, despite having double the market cap and similar revenue, UPS trades at a valuation discount to its rival according to Wall Street analysts' consensus forecasts for FCF. Note that FedEx's fiscal year ends in May, and the full-year figures are adjusted to UPS' fiscal year in the table.
Will FedEx increase its capital spending in 2021?
By contrast, during FedEx's recent earnings call, CFO Mike Lenz told investors that after an $800 million decline in capital spending to $5.1 billion for its fiscal 2021 (which is about half over), the company expects to increase it again in the next fiscal year.
Who is the CEO of FedEx Ground?
To be fair, FedEx Ground CEO Henry Maier did say he expected the ground unit's margin to improve "year over year in each of the next two quarters.". However, neither he nor Lenz would be induced to forecast what they thought would happen after that.
Is UPS a good buy in 2021?
Throw in the fact that UPS trades at a small discount and has a 2.4% dividend yield compared to FedEx's 1%, and it's clear that UPS is a slightly better buy for 2021.
How much did UPS stock rise in 2020?
From its coronavirus lows in March 2020 to its most recent peak, UPS stock rose as much as 166%. FedEx stock flew as much as 261% during the same period. Work-from-home and stay-at-home trends during the pandemic drove much of those gains. Now fears of the delta variant and a resurgence in Covid-19 cases may again spur demand for UPS ...
How many employees does FedEx have in 2021?
For fiscal 2021 (ended May 31), FedEx has approximately 570,000 employees, also operating in more than 220 countries. FedEx Express accounted for 50% of the company's $84 billion in revenue in fiscal 2021. FedEx Ground (37%) and FedEx Freight (9%) make up the bulk of the rest.
When will FedEx report 2022 Q1 results?
FedEx doesn't report fiscal 2022 Q1 results until September. Analysts expect UPS to post 31% earnings growth in its upcoming report. It reported a 141% gain in Q1. For the full year, consensus analyst estimates call for a 34% gain.
How are the two transportation rivals similar?
The two transportation rivals are quite similar in terms of annual revenue and global reach.
Is UPS stock on the IBD?
As it nears a new buy point, UPS stock has earned a spot on the IBD Breakout Stocks Index. While not on the index, FedEx stock is also near a new entry.
Does FedEx own UPS stock?
While neither stock made the latest list of new buys by the best mutual funds, both UPS and FedEx have solid institutional sponsorship. For UPS stock, 78 funds with an A+ rating from IBD have a stake in the company, while 69 such funds own shares in FedEx.
How much did FedEx grow in 2020?
Between fiscal 2017 and fiscal 2020 (fiscal year ends in May), FedEx’s Revenues grew by about 15%, rising from around $60.3 billion to $69.2 billion, partly driven by its TNT acquisition. On the other hand, UPS’ Revenues grew by about 28% between 2017 and 2020, rising from around $65.9 billion to $84.6 billion, implying UPS’ revenues have grown at a faster pace over the recent years. However, much of the growth for both the companies came over the recent quarters during the pandemic, as people stayed in-doors and ordered products online. This growth is captured in UPS’ numbers above but not for FedEx, given its fiscal 2020 ended in May. Looking at the last twelve month period, FedEx’s revenue surged to $74.7 billion, implying 8% growth (vs. 14% for UPS).
Is FedEx weighing down its earnings?
While both the companies have benefited from rapid growth in e-commerce, FedEx is partly being weighed down given the impact on its earnings from challenges in integration with TNT, which it acquired back in 2016.
