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 $94.5B against $11.4B — 8.3× the size. ZTO Express (Cayman) Inc. trades at the lower P/E: 11.0× against 21.3×. ZTO Express (Cayman) Inc. grew revenue faster over the last twelve months: 24.8% against 2.11%. ZTO Express (Cayman) Inc. has the higher net margin (19.0% vs 4.84%) and the higher return on invested capital (13.0% vs 11.9%). Both pay a dividend; United Parcel Service, Inc. yields more (5.90% vs 1.87%). 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 21.34 10.99 22.50
P/S 1.03 2.01 0.46
P/B 6.29 1.70 1.75
Price to free cash flow 13.63 n/m 18.31
EV/EBITDA 10.90 8.75 9.01
EV/Sales 1.25 1.84 0.88
Earnings yield 4.69% 9.10% (1.15%)
Free cash flow yield 7.34% (1.87%) 0.00%

Profitability

Metric UPS ZTO Integrated Freight & Logistics median
Gross margin 77.28% 25.10% 25.10%
Operating margin 7.13% 20.98% 0.92%
Net margin 4.84% 19.02% (0.14%)
Free cash flow margin 7.59% (3.77%) 0.00%
Return on equity 28.65% 16.37% 0.00%
Return on assets 6.14% 10.88% 0.00%
Return on invested capital 11.88% 13.03% 0.00%

Growth

Metric UPS ZTO Integrated Freight & Logistics median
Revenue growth (TTM) 2.11% 24.75% 9.95%
EPS growth (last fiscal year) (2.81%) 8.84% 5.86%
Revenue growth, 5-year CAGR 0.94% 12.69% 2.84%
Net income growth, 5-year CAGR 32.92% 14.46% 0.00%

Health

Metric UPS ZTO Integrated Freight & Logistics median
Debt to equity 1.74 0.34 0.12
Current ratio 1.24 1.67 1.58
Net debt to EBITDA 1.57 (1.05) 0.67

Dividend

Metric UPS ZTO Integrated Freight & Logistics median
Dividend yield 5.90% 1.87% 1.96%
Payout ratio 1.26 0.21 0.29

Size

Metric UPS ZTO Integrated Freight & Logistics median
Market cap 94.47b 11.38b 81.31m

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