Addentax Group (NASDAQ:ATXG) versus FedEx (NYSE:FDX) Financial Analysis

FedEx (NYSE:FDX) and Addentax Group (NASDAQ:ATXG) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for FedEx and Addentax Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FedEx	2	9	18	1	2.60
Addentax Group	1	0	0	0	1.00

FedEx presently has a consensus price target of $350.54, suggesting a potential upside of 5.00%. Given FedEx’s stronger consensus rating and higher probable upside, analysts plainly believe FedEx is more favorable than Addentax Group.

Profitability

This table compares FedEx and Addentax Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FedEx	4.68%	16.49%	5.21%
Addentax Group	-21.05%	-9.16%	-7.22%

Valuation & Earnings

This table compares FedEx and Addentax Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FedEx	$94.72 billion	0.83	$4.43 billion	$18.51	18.04
Addentax Group	$5.37 million	0.81	-$4.47 million	($3.92)	-0.94

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

Volatility & Risk

FedEx has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Addentax Group has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Institutional and Insider Ownership

84.5% of FedEx shares are owned by institutional investors. Comparatively, 10.1% of Addentax Group shares are owned by institutional investors. 0.7% of FedEx shares are owned by company insiders. Comparatively, 2.7% of Addentax Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

FedEx beats Addentax Group on 14 of the 15 factors compared between the two stocks.

About FedEx

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services. The FedEx Ground segment provides small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight transportation services. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. In addition, the company offers supply chain management solutions; and air and ocean cargo transportation, specialty transportation, customs brokerage, and trade management tools and data. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

About Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.