FedEx Corporation (FDX) vs United Parcel Service, Inc. (UPS)

FedEx Corporation and United Parcel Service, Inc. are both Integrated Freight & Logistics companies. United Parcel Service, Inc. is the larger, with a market value of $94.5B against $74.2B — 1.3× the size. FedEx Corporation trades at the lower P/E: 19.4× against 21.3×. FedEx Corporation grew revenue faster over the last twelve months: 9.51% against 2.11%. United Parcel Service, Inc. has the higher net margin (4.84% vs 4.09%) and the higher return on invested capital (11.9% vs 8.22%). Both pay a dividend; United Parcel Service, Inc. yields more (5.90% vs 1.68%). Across the 23 metrics below, FedEx Corporation leads on 12 and United Parcel Service, Inc. on 11.

Valuation

Metric FDX UPS Integrated Freight & Logistics median
P/E 19.41 21.34 22.50
P/S 0.79 1.03 0.46
P/B 2.17 6.29 1.75
Price to free cash flow 19.32 13.63 18.31
EV/EBITDA 7.43 10.90 9.01
EV/Sales 0.88 1.25 0.88
Earnings yield 5.15% 4.69% (1.15%)
Free cash flow yield 5.18% 7.34% 0.00%

Profitability

Metric FDX UPS Integrated Freight & Logistics median
Gross margin 69.54% 77.28% 25.10%
Operating margin 5.61% 7.13% 0.92%
Net margin 4.09% 4.84% (0.14%)
Free cash flow margin 0.00% 7.59% 0.00%
Return on equity 12.51% 28.65% 0.00%
Return on assets 4.30% 6.14% 0.00%
Return on invested capital 8.22% 11.88% 0.00%

Growth

Metric FDX UPS Integrated Freight & Logistics median
Revenue growth (TTM) 9.51% 2.11% 9.95%
EPS growth (last fiscal year) 10.15% (2.81%) 5.86%
Revenue growth, 5-year CAGR 2.44% 0.94% 2.84%
Net income growth, 5-year CAGR (3.26%) 32.92% 0.00%

Health

Metric FDX UPS Integrated Freight & Logistics median
Debt to equity 0.50 1.74 0.12
Current ratio 1.33 1.24 1.58
Net debt to EBITDA 1.26 1.57 0.67

Dividend

Metric FDX UPS Integrated Freight & Logistics median
Dividend yield 1.68% 5.90% 1.96%
Payout ratio 0.33 1.26 0.29

Size

Metric FDX UPS Integrated Freight & Logistics median
Market cap 74.19b 94.47b 81.31m

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