Reviewing United Parcel Service (NYSE:UPS) & GXO Logistics (NYSE:GXO)

GXO Logistics (NYSE:GXO) and United Parcel Service (NYSE:UPS) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Valuation and Earnings

This table compares GXO Logistics and United Parcel Service”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GXO Logistics	$11.71 billion	0.48	$134.00 million	$0.62	78.80
United Parcel Service	$91.07 billion	0.93	$5.78 billion	$6.86	14.53

United Parcel Service has higher revenue and earnings than GXO Logistics. United Parcel Service is trading at a lower price-to-earnings ratio than GXO Logistics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for GXO Logistics and United Parcel Service, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GXO Logistics	0	5	9	0	2.64
United Parcel Service	2	12	11	1	2.42

GXO Logistics currently has a consensus price target of $54.93, suggesting a potential upside of 12.42%. United Parcel Service has a consensus price target of $120.26, suggesting a potential upside of 20.62%. Given United Parcel Service’s higher possible upside, analysts plainly believe United Parcel Service is more favorable than GXO Logistics.

Profitability

This table compares GXO Logistics and United Parcel Service’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GXO Logistics	0.61%	10.49%	2.75%
United Parcel Service	6.44%	40.15%	9.65%

Insider and Institutional Ownership

90.7% of GXO Logistics shares are owned by institutional investors. Comparatively, 60.3% of United Parcel Service shares are owned by institutional investors. 2.3% of GXO Logistics shares are owned by company insiders. Comparatively, 0.1% of United Parcel Service shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

GXO Logistics has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500. Comparatively, United Parcel Service has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Summary

United Parcel Service beats GXO Logistics on 10 of the 15 factors compared between the two stocks.

About GXO Logistics

GXO Logistics, Inc., together with its subsidiaries, provides logistics services worldwide. The company provides warehousing and distribution, order fulfilment, e-commerce, reverse logistics, and other supply chain services. As of December 31, 2023, it operated in approximately 974 facilities. The company serves various customers in the e-commerce, omnichannel retail, technology and consumer electronics, food and beverage, industrial and manufacturing, consumer packaged goods, and others. GXO Logistics, Inc. was incorporated in 2021 and is headquartered in Greenwich, Connecticut.

About United Parcel Service

United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services comprising guaranteed time-definite express options in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The company also offers international air and ocean freight forwarding, post-sales, and mail and consulting services. In addition, it provides truckload and customs brokerage services; supply chain solutions to the healthcare and life sciences industries; fulfillment and transportation management services; and integrated supply chain and shipment insurance solutions. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.