UPS
United Parcel Service, Inc.
Integrated Freight & Logistics
Market Cap$89.22B
5Y Perf.-5.6%
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Side-by-side financial analysisUPS
FDX
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Stock Comparison
UPS vs FDX
Revenue, margins, valuation, and 5-year total return — side by side.
FDX
FedEx Corporation
Integrated Freight & Logistics
Market Cap$77.83B
5Y Perf.+188.9%
UPS vs FDX — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | UPS | FDX |
|---|---|---|
| Industry | Integrated Freight & Logistics | Integrated Freight & Logistics |
| Market Cap | $89.22B | $77.83B |
| Revenue (TTM) | $88.33B | $91.93B |
| Net Income (TTM) | $5.25B | $4.48B |
| Gross Margin | 18.1% | 24.4% |
| Operating Margin | 8.6% | 6.5% |
| Forward P/E | 14.8x | 16.4x |
| Total Debt | $32.29B | $37.42B |
| Cash & Equiv. | $5.89B | $5.50B |
UPS vs FDX — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
UPS
FDX
| Stock | Jun 20 | Jun 26 | Return |
|---|---|---|---|
| United Parcel Servi… (UPS) | 100 | 94.4 | -5.6% |
| FedEx Corporation (FDX) | 100 | 288.9 | +188.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: UPS vs FDX
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: UPS leads in 5 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. FedEx Corporation is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
🥇UPS emerged as the overall leader. Track its performance:
UPS
United Parcel Service, Inc.
The Income Pick
UPS carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 16 yrs, beta 0.89, yield 6.0%
- Lower volatility, beta 0.89, current ratio 1.22x
- PEG 0.44 vs FDX's 0.59
Best for: income & stability and sleep-well-at-night
FDX
FedEx Corporation
The Growth Play
FDX is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 0.3%, EPS growth -2.3%, 3Y rev CAGR -2.0%
- 167.5% 10Y total return vs UPS's 45.5%
- 0.3% revenue growth vs UPS's -2.5%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | FDX | 0.3% revenue growth vs UPS's -2.5% |
| Value | UPS | Lower P/E (14.8x vs 16.4x), PEG 0.44 vs 0.59 |
| Quality / Margins | UPS | 5.9% margin vs FDX's 4.9% |
| Stability / Safety | UPS | Beta 0.89 vs FDX's 0.92 |
| Dividends | UPS | 6.0% yield, 16-year raise streak, vs FDX's 1.7% |
| Momentum (1Y) | FDX | +84.0% vs UPS's +12.4% |
| Efficiency (ROA) | UPS | 7.3% ROA vs FDX's 5.0%, ROIC 16.1% vs 7.7% |
UPS vs FDX — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
UPS vs FDX — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLUPSLAGGINGFDX
FDXFedEx Corporation
1leads
UPSUnited Parcel Service…
3leads
6 Total Categories
CATEGORYLEADERvs FDXMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
UPS5/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
UPS6/8
Total Returns1Y, 3Y, 5Y total returns with dividends
FDX6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
UPS2/2
Income & Cash Flow (Last 12 Months)
Evenly matched — UPS and FDX each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
FDX and UPS operate at a comparable scale, with $91.9B and $88.3B in trailing revenue. Profitability is closely matched — net margins range from 5.9% (UPS) to 4.9% (FDX). On growth, FDX holds the edge at +8.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | UPSUnited Parcel Ser… | FDXFedEx Corporation |
|---|---|---|
| RevenueTrailing 12 months | $88.3B | $91.9B |
| EBITDAEarnings before interest/tax | $10.5B | $10.3B |
| Net IncomeAfter-tax profit | $5.2B | $4.5B |
| Free Cash FlowCash after capex | $4.5B | $4.4B |
| Gross MarginGross profit ÷ Revenue | +18.1% | +24.4% |
| Operating MarginEBIT ÷ Revenue | +8.6% | +6.5% |
| Net MarginNet income ÷ Revenue | +5.9% | +4.9% |
| FCF MarginFCF ÷ Revenue | +5.1% | +4.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | -1.6% | +8.3% |
| EPS Growth (YoY)Latest quarter vs prior year | -27.1% | +15.7% |
Evenly matched — UPS and FDX each lead in 3 of 6 comparable metrics.
Valuation Metrics
UPS leads this category, winning 5 of 7 comparable metrics.
Valuation Metrics
At 16.0x trailing earnings, UPS trades at a 18% valuation discount to FDX's 19.4x P/E. Adjusting for growth (PEG ratio), UPS offers better value at 0.48x vs FDX's 0.69x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | UPSUnited Parcel Ser… | FDXFedEx Corporation |
|---|---|---|
| Market CapShares × price | $89.2B | $77.8B |
| Enterprise ValueMkt cap + debt − cash | $115.6B | $109.7B |
| Trailing P/EPrice ÷ TTM EPS | 16.01x | 19.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.80x | 16.45x |
| PEG RatioP/E ÷ EPS growth rate | 0.48x | 0.69x |
| EV / EBITDAEnterprise value multiple | 9.46x | 10.61x |
| Price / SalesMarket cap ÷ Revenue | 1.01x | 0.89x |
| Price / BookPrice ÷ Book value/share | 5.49x | 2.82x |
| Price / FCFMarket cap ÷ FCF | 18.72x | 26.11x |
UPS leads this category, winning 5 of 7 comparable metrics.
Profitability & Efficiency
UPS leads this category, winning 6 of 8 comparable metrics.
Profitability & Efficiency
UPS delivers a 33.0% return on equity — every $100 of shareholder capital generates $33 in annual profit, vs $16 for FDX. FDX carries lower financial leverage with a 1.33x debt-to-equity ratio, signaling a more conservative balance sheet compared to UPS's 1.99x.
| Metric | UPSUnited Parcel Ser… | FDXFedEx Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +33.0% | +15.8% |
| ROA (TTM)Return on assets | +7.3% | +5.0% |
| ROICReturn on invested capital | +16.1% | +7.7% |
| ROCEReturn on capital employed | +15.3% | +8.3% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 1.99x | 1.33x |
| Net DebtTotal debt minus cash | $26.4B | $31.9B |
| Cash & Equiv.Liquid assets | $5.9B | $5.5B |
| Total DebtShort + long-term debt | $32.3B | $37.4B |
| Interest CoverageEBIT ÷ Interest expense | 7.37x | 16.28x |
UPS leads this category, winning 6 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
FDX leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in FDX five years ago would be worth $15,036 today (with dividends reinvested), compared to $6,875 for UPS. Over the past 12 months, FDX leads with a +84.0% total return vs UPS's +12.4%. The 3-year compound annual growth rate (CAGR) favors FDX at 22.0% vs UPS's -11.1% — a key indicator of consistent wealth creation.
| Metric | UPSUnited Parcel Ser… | FDXFedEx Corporation |
|---|---|---|
| YTD ReturnYear-to-date | +7.2% | +38.7% |
| 1-Year ReturnPast 12 months | +12.4% | +84.0% |
| 3-Year ReturnCumulative with dividends | -29.7% | +81.4% |
| 5-Year ReturnCumulative with dividends | -31.3% | +50.4% |
| 10-Year ReturnCumulative with dividends | +45.5% | +167.5% |
| CAGR (3Y)Annualised 3-year return | -11.1% | +22.0% |
FDX leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — UPS and FDX each lead in 1 of 2 comparable metrics.
Risk & Volatility
UPS is the less volatile stock with a 0.89 beta — it tends to amplify market swings less than FDX's 0.92 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. FDX currently trades 94.4% from its 52-week high vs UPS's 85.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | UPSUnited Parcel Ser… | FDXFedEx Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.89x | 0.92x |
| 52-Week HighHighest price in past year | $122.41 | $345.37 |
| 52-Week LowLowest price in past year | $82.00 | $174.01 |
| % of 52W HighCurrent price vs 52-week peak | +85.8% | +94.4% |
| RSI (14)Momentum oscillator 0–100 | 49.1 | 51.4 |
| Avg Volume (50D)Average daily shares traded | 4.6M | 2.0M |
Evenly matched — UPS and FDX each lead in 1 of 2 comparable metrics.
Analyst Outlook
UPS leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates UPS as "Hold" and FDX as "Buy". Consensus price targets imply 9.7% upside for UPS (target: $115) vs 5.2% for FDX (target: $343). For income investors, UPS offers the higher dividend yield at 6.05% vs FDX's 1.69%.
| Metric | UPSUnited Parcel Ser… | FDXFedEx Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $115.23 | $343.24 |
| # AnalystsCovering analysts | 45 | 49 |
| Dividend YieldAnnual dividend ÷ price | +6.0% | +1.7% |
| Dividend StreakConsecutive years of raises | 16 | 5 |
| Dividend / ShareAnnual DPS | $6.35 | $5.51 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.1% | +3.9% |
UPS leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
UPS leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). FDX leads in 1 (Total Returns). 2 tied.
Best OverallUnited Parcel Service, Inc. (UPS)Leads 3 of 6 categories
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UPS vs FDX: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is UPS or FDX a better buy right now?
For growth investors, FedEx Corporation (FDX) is the stronger pick with 0.
3% revenue growth year-over-year, versus -2. 5% for United Parcel Service, Inc. (UPS). United Parcel Service, Inc. (UPS) offers the better valuation at 16. 0x trailing P/E (14. 8x forward), making it the more compelling value choice. Analysts rate FedEx Corporation (FDX) a "Buy" — based on 49 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.
02Which has the better valuation — UPS or FDX?
On trailing P/E, United Parcel Service, Inc.
(UPS) is the cheapest at 16. 0x versus FedEx Corporation at 19. 4x. On forward P/E, United Parcel Service, Inc. is actually cheaper at 14. 8x. 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. 44x versus FedEx Corporation's 0. 59x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — UPS or FDX?
Over the past 5 years, FedEx Corporation (FDX) delivered a total return of +50.
4%, compared to -31. 3% for United Parcel Service, Inc. (UPS). Over 10 years, the gap is even starker: FDX returned +167. 5% versus UPS's +45. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — UPS or FDX?
By beta (market sensitivity over 5 years), United Parcel Service, Inc.
(UPS) is the lower-risk stock at 0. 89β versus FedEx Corporation's 0. 92β — meaning FDX is approximately 4% more volatile than UPS relative to the S&P 500. On balance sheet safety, FedEx Corporation (FDX) carries a lower debt/equity ratio of 133% versus 199% for United Parcel Service, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — UPS or FDX?
By revenue growth (latest reported year), FedEx Corporation (FDX) is pulling ahead at 0.
3% versus -2. 5% for United Parcel Service, Inc. (UPS). On earnings-per-share growth, the picture is similar: FedEx Corporation grew EPS -2. 3% year-over-year, compared to -3. 0% for United Parcel Service, Inc.. Over a 3-year CAGR, FDX leads at -2. 0% 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.
06Which has better profit margins — UPS or FDX?
United Parcel Service, Inc.
(UPS) is the more profitable company, earning 6. 3% net margin versus 4. 7% for FedEx Corporation — meaning it keeps 6. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: UPS leads at 9. 6% versus 6. 9% for FDX. At the gross margin level — before operating expenses — FDX leads at 21. 6%, 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.
07Is UPS or FDX more undervalued right now?
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. 44x versus FedEx Corporation's 0. 59x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, United Parcel Service, Inc. (UPS) trades at 14. 8x forward P/E versus 16. 4x for FedEx Corporation — 1. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UPS: 9. 7% to $115. 23.
08Which pays a better dividend — UPS or FDX?
All stocks in this comparison pay dividends.
United Parcel Service, Inc. (UPS) offers the highest yield at 6. 0%, versus 1. 7% for FedEx Corporation (FDX).
09Is UPS or FDX better for a retirement portfolio?
For long-horizon retirement investors, FedEx Corporation (FDX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
92), 1. 7% yield, +167. 5% 10Y return). Both have compounded well over 10 years (FDX: +167. 5%, UPS: +45. 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.
10What are the main differences between UPS and FDX?
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: UPS is a mid-cap deep-value stock; FDX is a mid-cap quality compounder stock. 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.
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