MATX vs UPS vs FDX vs XPO

For growth investors, XPO Logistics, Inc.

(XPO) is the stronger pick with 1. 1% revenue growth year-over-year, versus -2. 5% for United Parcel Service, Inc. (UPS). Matson, Inc. (MATX) offers the better valuation at 13. 0x trailing P/E (13. 4x forward), making it the more compelling value choice. Analysts rate Matson, Inc. (MATX) a "Buy" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Matson, Inc.

(MATX) is the cheapest at 13. 0x versus XPO Logistics, Inc. at 78. 3x. On forward P/E, Matson, Inc. is actually cheaper at 13. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: United Parcel Service, Inc. wins at 0. 42x versus XPO Logistics, Inc. 's 1. 59x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, XPO Logistics, Inc.

(XPO) delivered a total return of +306. 8%, compared to -40. 0% for United Parcel Service, Inc. (UPS). Over 10 years, the gap is even starker: XPO returned +21. 5% versus UPS's +44. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), United Parcel Service, Inc.

(UPS) is the lower-risk stock at 0. 90β versus Matson, Inc. 's 1. 76β — meaning MATX is approximately 94% more volatile than UPS relative to the S&P 500. On balance sheet safety, Matson, Inc. (MATX) carries a lower debt/equity ratio of 26% versus 3% for XPO Logistics, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), XPO Logistics, Inc.

(XPO) is pulling ahead at 1. 1% versus -2. 5% for United Parcel Service, Inc. (UPS). On earnings-per-share growth, the picture is similar: Matson, Inc. grew EPS -0. 4% year-over-year, compared to -18. 3% for XPO Logistics, Inc.. Over a 3-year CAGR, XPO leads at 1. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Matson, Inc.

(MATX) is the more profitable company, earning 13. 3% net margin versus 3. 9% for XPO Logistics, Inc. — meaning it keeps 13. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MATX leads at 14. 0% versus 6. 9% for FDX. At the gross margin level — before operating expenses — MATX leads at 22. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, United Parcel Service, Inc. (UPS) is the more undervalued stock at a PEG of 0. 42x versus XPO Logistics, Inc. 's 1. 59x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Matson, Inc. (MATX) trades at 13. 4x forward P/E versus 43. 9x for XPO Logistics, Inc. — 30. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UPS: 15. 1% to $115. 23.

In this comparison, UPS (6.

3% yield), FDX (1. 5% yield), MATX (0. 8% yield) pay a dividend. XPO does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, United Parcel Service, Inc.

(UPS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 90), 6. 3% yield). XPO Logistics, Inc. (XPO) carries a higher beta of 1. 73 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (UPS: +44. 7%, XPO: +21. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: MATX is a small-cap deep-value stock; UPS is a mid-cap deep-value stock; FDX is a mid-cap quality compounder stock; XPO is a mid-cap quality compounder stock. MATX, UPS, FDX pay a dividend while XPO does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.