United Parcel Service (NYSE: UPS) and XPO Intermodal (NASDAQ:PACR) are both transportation companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
This is a summary of current ratings and target prices for United Parcel Service and XPO Intermodal, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Parcel Service||0||11||4||0||2.27|
United Parcel Service currently has a consensus price target of $115.79, indicating a potential downside of 1.16%. Given United Parcel Service’s higher possible upside, research analysts plainly believe United Parcel Service is more favorable than XPO Intermodal.
United Parcel Service pays an annual dividend of $3.32 per share and has a dividend yield of 2.8%. XPO Intermodal does not pay a dividend. United Parcel Service pays out 81.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. XPO Intermodal has raised its dividend for 7 consecutive years.
This table compares United Parcel Service and XPO Intermodal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Parcel Service||5.68%||417.18%||13.38%|
Institutional and Insider Ownership
52.9% of United Parcel Service shares are owned by institutional investors. 0.6% of United Parcel Service shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares United Parcel Service and XPO Intermodal’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|United Parcel Service||$62.92 billion||1.61||$7.85 billion||$4.07||28.78|
United Parcel Service has higher revenue and earnings than XPO Intermodal.
United Parcel Service beats XPO Intermodal on 9 of the 11 factors compared between the two stocks.
United Parcel Service Company Profile
United Parcel Service, Inc. (UPS) is a package delivery company. The Company is a provider of global supply chain management solutions. The Company operates through three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. As of December 31, 2016, the Company delivered packages in over 220 countries and territories. The Company offers a spectrum of the United States domestic guaranteed ground and air package transportation services. The International Package segment includes the small package operations in Europe, Asia-Pacific, Canada and Latin America, the Indian sub-continent, the Middle East and Africa. The Supply Chain & Freight segment includes its forwarding and logistics services, truckload freight brokerage, UPS Freight and its financial offerings through UPS Capital. The Company serves the global market for logistics services, which include transportation, distribution, contract logistics and ground freight.
XPO Intermodal Company Profile
Pacer International Inc. (Pacer) is a asset-light transportation and global logistics service provider. The Company provides its transportation services from two operating segments: intermodal and logistics. Intermodal provides intermodal transportation services (the movement of freight through trailer or container using two or more modes of transportation, which include rail and truck segments) principally to beneficial cargo owners (end-user customers), transportation intermediaries and steamship lines who use intermodal transportation. Logistics segment provides highway brokerage, supply chain management services, international freight forwarding, ocean shipping, and warehousing and distribution services to a variety of end-user customers. In April 2014, XPO Logistics Inc acquired the entire share capital of Pacer International Inc. In April 2014, it acquired Pacer International Inc.
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