United Parcel Service (NYSE: UPS) and ZTO Express (NYSE:ZTO) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
This table compares United Parcel Service and ZTO Express’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Parcel Service||7.45%||477.77%||12.76%|
Earnings & Valuation
This table compares United Parcel Service and ZTO Express’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|United Parcel Service||$65.87 billion||1.41||$4.91 billion||$6.01||17.89|
|ZTO Express||$2.01 billion||3.99||$485.63 million||$0.69||22.90|
United Parcel Service has higher revenue and earnings than ZTO Express. United Parcel Service is trading at a lower price-to-earnings ratio than ZTO Express, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for United Parcel Service and ZTO Express, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Parcel Service||1||11||7||0||2.32|
United Parcel Service presently has a consensus price target of $123.71, suggesting a potential upside of 15.06%. ZTO Express has a consensus price target of $17.90, suggesting a potential upside of 13.29%. Given United Parcel Service’s stronger consensus rating and higher probable upside, equities research analysts plainly believe United Parcel Service is more favorable than ZTO Express.
Insider and Institutional Ownership
54.1% of United Parcel Service shares are owned by institutional investors. Comparatively, 28.8% of ZTO Express shares are owned by institutional investors. 0.6% of United Parcel Service shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
United Parcel Service has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, ZTO Express has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.
United Parcel Service pays an annual dividend of $3.64 per share and has a dividend yield of 3.4%. ZTO Express does not pay a dividend. United Parcel Service pays out 60.6% of its earnings in the form of a dividend. United Parcel Service has raised its dividend for 8 consecutive years.
United Parcel Service beats ZTO Express on 12 of the 17 factors compared between the two stocks.
About United Parcel Service
United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services in Europe, the Asia Pacific, Canada and Latin America, the Indian sub-continent, the Middle East, and Africa. This segment offers guaranteed time-definite express options, including Express Plus, Express, and Express Saver. The Supply Chain & Freight segment provides international air and ocean freight forwarding, customs and truckload freight brokerage, distribution and post-sales, and mail and consulting services in approximately 220 countries and territories; and less-than-truckload and truckload services to customers in North America. The company also offers shipping, visibility, and billing technologies; and insurance, financing, and payment services. It operates a fleet of approximately 119,000 package cars, vans, tractors, and motorcycles; and owns 45,000 containers that are used to transport cargo in its aircraft. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
About ZTO Express
ZTO Express (Cayman) Inc., through its subsidiaries, provides express delivery and other value-added logistics services in China. It offers delivery services for e-commerce merchants, traditional merchants, and other express service users, as well as through business partners. As of December 31, 2016, the company operated a fleet of approximately 2,900 self-owned trucks. ZTO Express (Cayman) Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.
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