United Parcel Service (NYSE:UPS – Get Free Report) is one of 60 publicly-traded companies in the “Air Freight & Logistics” industry, but how does it compare to its rivals? We will compare United Parcel Service to similar companies based on the strength of its risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares United Parcel Service and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Parcel Service | 5.08% | 37.50% | 8.21% |
| United Parcel Service Competitors | -1,605.68% | -24.14% | -12.60% |
Dividends
United Parcel Service pays an annual dividend of $6.56 per share and has a dividend yield of 6.4%. United Parcel Service pays out 121.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Air Freight & Logistics” companies pay a dividend yield of 2.6% and pay out 36.0% of their earnings in the form of a dividend. United Parcel Service has increased its dividend for 16 consecutive years.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Parcel Service | 1 | 11 | 8 | 1 | 2.43 |
| United Parcel Service Competitors | 617 | 1973 | 2539 | 105 | 2.41 |
United Parcel Service presently has a consensus price target of $117.41, indicating a potential upside of 15.04%. As a group, “Air Freight & Logistics” companies have a potential upside of 17.43%. Given United Parcel Service’s rivals higher probable upside, analysts clearly believe United Parcel Service has less favorable growth aspects than its rivals.
Valuation and Earnings
This table compares United Parcel Service and its rivals revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| United Parcel Service | $89.93 billion | $5.57 billion | 18.97 |
| United Parcel Service Competitors | $12.03 billion | $591.75 million | 13.43 |
United Parcel Service has higher revenue and earnings than its rivals. United Parcel Service is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Volatility & Risk
United Parcel Service has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, United Parcel Service’s rivals have a beta of 0.88, meaning that their average share price is 12% less volatile than the S&P 500.
Insider & Institutional Ownership
60.3% of United Parcel Service shares are held by institutional investors. Comparatively, 42.6% of shares of all “Air Freight & Logistics” companies are held by institutional investors. 0.2% of United Parcel Service shares are held by insiders. Comparatively, 18.4% of shares of all “Air Freight & Logistics” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
United Parcel Service beats its rivals on 11 of the 15 factors compared.
United Parcel Service Company Profile
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.
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