ZTO vs UPS

For growth investors, ZTO Express (Cayman) Inc.

(ZTO) is the stronger pick with 15. 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 15. 3x trailing P/E (14. 1x forward), making it the more compelling value choice. Analysts rate ZTO Express (Cayman) Inc. (ZTO) a "Buy" — based on 10 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, United Parcel Service, Inc.

(UPS) is the cheapest at 15. 3x versus ZTO Express (Cayman) Inc. at 16. 1x. On forward P/E, ZTO Express (Cayman) Inc. is actually cheaper at 1. 9x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ZTO Express (Cayman) Inc. wins at 0. 23x versus United Parcel Service, Inc. 's 0. 42x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, ZTO Express (Cayman) Inc.

(ZTO) delivered a total return of -12. 5%, compared to -40. 0% for United Parcel Service, Inc. (UPS). Over 10 years, the gap is even starker: ZTO returned +74. 6% 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), ZTO Express (Cayman) Inc.

(ZTO) is the lower-risk stock at 0. 36β versus United Parcel Service, Inc. 's 0. 90β — meaning UPS is approximately 148% more volatile than ZTO relative to the S&P 500. On balance sheet safety, ZTO Express (Cayman) Inc. (ZTO) carries a lower debt/equity ratio of 28% versus 199% for United Parcel Service, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), ZTO Express (Cayman) Inc.

(ZTO) is pulling ahead at 15. 3% versus -2. 5% for United Parcel Service, Inc. (UPS). On earnings-per-share growth, the picture is similar: ZTO Express (Cayman) Inc. grew EPS 0. 9% year-over-year, compared to -3. 0% for United Parcel Service, Inc.. Over a 3-year CAGR, ZTO leads at 13. 3% 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.

ZTO Express (Cayman) Inc.

(ZTO) is the more profitable company, earning 19. 9% net margin versus 6. 3% for United Parcel Service, Inc. — meaning it keeps 19. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ZTO leads at 26. 6% versus 9. 6% for UPS. At the gross margin level — before operating expenses — ZTO leads at 31. 0%, 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, ZTO Express (Cayman) Inc. (ZTO) is the more undervalued stock at a PEG of 0. 23x versus United Parcel Service, Inc. 's 0. 42x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, ZTO Express (Cayman) Inc. (ZTO) trades at 1. 9x forward P/E versus 14. 1x for United Parcel Service, Inc. — 12. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UPS: 15. 1% to $115. 23.

All stocks in this comparison pay dividends.

United Parcel Service, Inc. (UPS) offers the highest yield at 6. 3%, versus 3. 9% for ZTO Express (Cayman) Inc. (ZTO).

For long-horizon retirement investors, ZTO Express (Cayman) Inc.

(ZTO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 36), 3. 9% yield). Both have compounded well over 10 years (ZTO: +74. 6%, UPS: +44. 7%), 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: ZTO is a mid-cap high-growth stock; UPS is a mid-cap deep-value 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.