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 $83.2B against $70.0B — 1.2× the size. FedEx Corporation trades at the lower P/E: 15.8× against 18.1×. FedEx Corporation grew revenue faster over the last twelve months: 7.73% against −0.42%. United Parcel Service, Inc. has the higher net margin (5.08% vs 4.68%) and the higher return on invested capital (11.8% vs 7.75%). Both pay a dividend; United Parcel Service, Inc. yields more (6.73% vs 1.82%). Across the 23 metrics below, FedEx Corporation leads on 16 and United Parcel Service, Inc. on 7.

Valuation

Metric FDX UPS Integrated Freight & Logistics median
P/E 15.75 18.09 22.48
P/S 0.73 0.92 0.73
P/B 2.19 5.49 1.91
Price to free cash flow 9.18 13.24 13.24
EV/EBITDA 6.69 9.85 9.43
EV/Sales 0.86 1.14 1.10
Earnings yield 6.35% 5.53% (1.27%)
Free cash flow yield 10.90% 7.55% 0.00%

Profitability

Metric FDX UPS Integrated Freight & Logistics median
Gross margin 70.79% 78.35% 27.04%
Operating margin 5.77% 7.31% 0.92%
Net margin 4.68% 5.08% (0.14%)
Free cash flow margin 7.97% 6.97% 0.00%
Return on equity 14.85% 29.60% 0.00%
Return on assets 10.12% 6.43% 0.00%
Return on invested capital 7.75% 11.77% 0.00%

Growth

Metric FDX UPS Integrated Freight & Logistics median
Revenue growth (TTM) 7.73% (0.42%) 6.03%
EPS growth (last fiscal year) 10.15% (2.81%) 7.70%
Revenue growth, 5-year CAGR 2.44% 0.94% 2.88%
Net income growth, 5-year CAGR (3.26%) 32.92% 0.00%

Health

Metric FDX UPS Integrated Freight & Logistics median
Debt to equity 0.81 1.62 0.14
Current ratio 1.48 1.18 1.58
Net debt to EBITDA 1.26 1.57 0.41

Dividend

Metric FDX UPS Integrated Freight & Logistics median
Dividend yield 1.82% 6.73% 1.89%
Payout ratio 0.29 1.22 0.29

Size

Metric FDX UPS Integrated Freight & Logistics median
Market cap 69.95b 83.23b 65.37m

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