United Parcel Service (UPS) Competitors

United Parcel Service (NYSE:UPS) and FedEx (NYSE:FDX) are both large-cap transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, media sentiment, valuation, profitability, dividends, community ranking and institutional ownership.

Is UPS or FDX a better dividend stock?

United Parcel Service pays an annual dividend of $6.52 per share and has a dividend yield of 5.0%. FedEx pays an annual dividend of $5.52 per share and has a dividend yield of 2.0%. United Parcel Service pays out 98.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FedEx pays out 35.2% of its earnings in the form of a dividend. United Parcel Service has increased its dividend for 15 consecutive years. United Parcel Service is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the MarketBeat Community prefer UPS or FDX?

FedEx received 771 more outperform votes than United Parcel Service when rated by MarketBeat users. Likewise, 70.16% of users gave FedEx an outperform vote while only 59.86% of users gave United Parcel Service an outperform vote.

Company	Underperform	Outperform
United Parcel Service	Outperform Votes 856 59.86%	Underperform Votes 574 40.14%
FedEx	Outperform Votes 1627 70.16%	Underperform Votes 692 29.84%

Do insiders & institutionals hold more shares of UPS or FDX?

60.3% of United Parcel Service shares are held by institutional investors. Comparatively, 84.5% of FedEx shares are held by institutional investors. 0.1% of United Parcel Service shares are held by insiders. Comparatively, 8.9% of FedEx shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Which has preferable valuation & earnings, UPS or FDX?

United Parcel Service has higher revenue and earnings than FedEx. FedEx is trading at a lower price-to-earnings ratio than United Parcel Service, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Parcel Service	$90.69B	1.22	$6.71B	$6.62	19.60
FedEx	$87.69B	0.76	$4.33B	$15.69	17.53

Do analysts prefer UPS or FDX?

United Parcel Service presently has a consensus price target of $151.10, indicating a potential upside of 16.43%. FedEx has a consensus price target of $325.61, indicating a potential upside of 18.36%. Given FedEx's higher probable upside, analysts plainly believe FedEx is more favorable than United Parcel Service.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Parcel Service	2 Sell rating(s)	5 Hold rating(s)	14 Buy rating(s)	2 Strong Buy rating(s)	2.70
FedEx	2 Sell rating(s)	8 Hold rating(s)	16 Buy rating(s)	0 Strong Buy rating(s)	2.54

Does the media prefer UPS or FDX?

In the previous week, United Parcel Service had 30 more articles in the media than FedEx. MarketBeat recorded 65 mentions for United Parcel Service and 35 mentions for FedEx. United Parcel Service's average media sentiment score of 1.31 beat FedEx's score of 0.88 indicating that United Parcel Service is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
United Parcel Service	50 Very Positive mention(s)	6 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
FedEx	23 Very Positive mention(s)	4 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive

Which has more risk and volatility, UPS or FDX?

United Parcel Service has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, FedEx has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Is UPS or FDX more profitable?

United Parcel Service has a net margin of 6.25% compared to FedEx's net margin of 4.45%. United Parcel Service's return on equity of 37.38% beat FedEx's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
United Parcel Service	6.25%	37.38%	9.23%
FedEx	4.45%	15.59%	4.86%

Summary

United Parcel Service beats FedEx on 13 of the 22 factors compared between the two stocks.