United Parcel Service, Inc. (UPS) vs ZTO Express (Cayman) Inc. (ZTO)

United Parcel Service, Inc. and ZTO Express (Cayman) Inc. are both Integrated Freight & Logistics companies. United Parcel Service, Inc. is the larger, with a market value of $78.7B against $10.7B — 7.4× the size. ZTO Express (Cayman) Inc. trades at the lower P/E: 10.3× against 17.4×. ZTO Express (Cayman) Inc. grew revenue faster over the last twelve months: 24.8% against −0.42%. ZTO Express (Cayman) Inc. has the higher net margin (19.0% vs 5.08%) and the higher return on invested capital (13.0% vs 11.8%). Both pay a dividend; United Parcel Service, Inc. yields more (4.44% vs 2.77%). Across the 22 metrics below, ZTO Express (Cayman) Inc. leads on 14 and United Parcel Service, Inc. on 8.

Valuation

Metric UPS ZTO Integrated Freight & Logistics median
P/E 17.43 10.26 21.28
P/S 0.89 1.88 0.71
P/B 5.30 1.59 1.67
Price to free cash flow 12.77 n/m 15.27
EV/EBITDA 9.56 8.11 8.95
EV/Sales 1.11 1.70 1.06
Earnings yield 5.74% 9.75% (1.34%)
Free cash flow yield 7.83% (2.01%) 0.00%

Profitability

Metric UPS ZTO Integrated Freight & Logistics median
Gross margin 78.35% 25.10% 26.33%
Operating margin 7.31% 20.98% 0.92%
Net margin 5.08% 19.02% (0.14%)
Free cash flow margin 6.97% (3.77%) 0.00%
Return on equity 29.60% 16.37% 0.00%
Return on assets 6.43% 10.88% 0.00%
Return on invested capital 11.77% 13.03% 0.00%

Growth

Metric UPS ZTO Integrated Freight & Logistics median
Revenue growth (TTM) (0.42%) 24.75% 6.03%
EPS growth (last fiscal year) (2.81%) 8.84% —
Revenue growth, 5-year CAGR 0.94% 12.69% 2.88%
Net income growth, 5-year CAGR 32.92% 14.46% 0.00%

Health

Metric UPS ZTO Integrated Freight & Logistics median
Debt to equity 1.62 0.34 0.12
Current ratio 1.18 1.67 1.57
Net debt to EBITDA 1.57 (1.05) 0.86

Dividend

Metric UPS ZTO Integrated Freight & Logistics median
Dividend yield 4.44% 2.77% 2.25%
Payout ratio 0.54 0.00 0.13

Size

Metric UPS ZTO Integrated Freight & Logistics median
Market cap 78.73b 10.66b 56.42m

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