FedEx Corporation (FDX) vs ZTO Express (Cayman) Inc. (ZTO)

FedEx Corporation and ZTO Express (Cayman) Inc. are both Integrated Freight & Logistics companies. FedEx Corporation is the larger, with a market value of $74.2B against $11.4B — 6.5× the size. ZTO Express (Cayman) Inc. trades at the lower P/E: 10.9× against 18.8×. ZTO Express (Cayman) Inc. grew revenue faster over the last twelve months: 24.8% against 9.51%. ZTO Express (Cayman) Inc. has the higher net margin (19.0% vs 4.09%) and the higher return on invested capital (13.0% vs 8.22%). Both pay a dividend; ZTO Express (Cayman) Inc. yields more (1.88% vs 1.73%). Across the 22 metrics below, ZTO Express (Cayman) Inc. leads on 15 and FedEx Corporation on 7.

Valuation

Metric FDX ZTO Integrated Freight & Logistics median
P/E 18.82 10.93 22.15
P/S 0.76 2.00 0.46
P/B 2.10 1.69 1.72
Price to free cash flow 18.73 n/m 18.24
EV/EBITDA 7.22 8.69 9.24
EV/Sales 0.85 1.82 0.87
Earnings yield 5.31% 9.15% (1.14%)
Free cash flow yield 5.34% (1.89%) 0.00%

Profitability

Metric FDX ZTO Integrated Freight & Logistics median
Gross margin 69.54% 25.10% 25.10%
Operating margin 5.61% 20.98% 0.92%
Net margin 4.09% 19.02% (0.14%)
Free cash flow margin 0.00% (3.77%) 0.00%
Return on equity 12.51% 16.37% 0.00%
Return on assets 4.30% 10.88% 0.00%
Return on invested capital 8.22% 13.03% 0.00%

Growth

Metric FDX ZTO Integrated Freight & Logistics median
Revenue growth (TTM) 9.51% 24.75% 9.95%
EPS growth (last fiscal year) 10.15% 8.84% 5.86%
Revenue growth, 5-year CAGR 2.44% 12.69% 2.84%
Net income growth, 5-year CAGR (3.26%) 14.46% 0.00%

Health

Metric FDX ZTO Integrated Freight & Logistics median
Debt to equity 0.50 0.34 0.12
Current ratio 1.33 1.67 1.58
Net debt to EBITDA 1.26 (1.05) 0.67

Dividend

Metric FDX ZTO Integrated Freight & Logistics median
Dividend yield 1.73% 1.88% 2.01%
Payout ratio 0.33 0.21 0.31

Size

Metric FDX ZTO Integrated Freight & Logistics median
Market cap 74.19b 11.38b 78.89m

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