FDX vs. UPS, EXPD, XPO, CHRW, HUBG, RKLB, ATSG, FWRD, PKOH, and AIRT
Should you be buying FedEx stock or one of its competitors? The main competitors of FedEx include United Parcel Service (UPS), Expeditors International of Washington (EXPD), XPO (XPO), C.H. Robinson Worldwide (CHRW), Hub Group (HUBG), Rocket Lab USA (RKLB), Air Transport Services Group (ATSG), Forward Air (FWRD), Park-Ohio (PKOH), and Air T (AIRT).
United Parcel Service (NYSE:UPS) and FedEx (NYSE:FDX) are both large-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, community ranking, media sentiment, earnings, risk, analyst recommendations, profitability, dividends and valuation.
United Parcel Service pays an annual dividend of $6.52 per share and has a dividend yield of 5.1%. FedEx pays an annual dividend of $5.52 per share and has a dividend yield of 1.8%. United Parcel Service pays out 94.5% 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 32.0% 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.
60.3% of United Parcel Service shares are owned by institutional investors. Comparatively, 84.5% of FedEx shares are owned by institutional investors. 0.1% of United Parcel Service shares are owned by company insiders. Comparatively, 8.7% of FedEx shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
United Parcel Service currently has a consensus target price of $154.95, suggesting a potential upside of 20.26%. FedEx has a consensus target price of $314.00, suggesting a potential upside of 4.69%. Given FedEx's higher possible upside, research analysts clearly believe United Parcel Service is more favorable than FedEx.
In the previous week, United Parcel Service had 64 more articles in the media than FedEx. MarketBeat recorded 85 mentions for United Parcel Service and 21 mentions for FedEx. United Parcel Service's average media sentiment score of 0.10 beat FedEx's score of 0.03 indicating that FedEx is being referred to more favorably in the news media.
United Parcel Service has a net margin of 5.87% compared to United Parcel Service's net margin of 4.94%. FedEx's return on equity of 35.27% beat United Parcel Service's return on equity.
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.
FedEx received 750 more outperform votes than United Parcel Service when rated by MarketBeat users. Likewise, 70.13% of users gave FedEx an outperform vote while only 59.89% of users gave United Parcel Service an outperform vote.
United Parcel Service has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, FedEx has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Summary
United Parcel Service beats FedEx on 12 of the 22 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding FDX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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