FDX vs. UPS

Phlipper

Member
Here is the bottom line, no matter what financial jumble we here. Six months ago the stocks were the same. I do not remember what that price was but for easy math lets say it was $50 a share. So, if I purchased 10 shares in both companies I would have $500 worth of stock.

Today I want to sell all 20 shares I purchased six months ago. At $57.87 a share I would make $78.70 on my UPS investment. At $87.52 a share I would make $375.20 on my FDX investment. Seems to me the better investment is FDX.

Of course it was $100+ a year or so ago so a lot of people lost a lot of money when the bottom fell out but it is not wasting any time getting back up there. Whens the last time UPS had any significant jumps in the stock price?
 
How is it that FDX is so far away from their projected numbers that they get to announce a re-mastered version and are rewarded for inaccuracy??

UPS will be "right on" with their projections and get punished by the Street. I guess I just don't get it !! :knockedout:
For the answer refer to post #19!
 

moreluck

golden ticket member
ATTORNEYS GENERAL CUOMO, BULLOCK AND MILGRAM ANNOUNCE INTENT TO SUE FEDEX GROUND OVER VIOLATIONS OF STATE LABOR LAWS




FedEx Ground Improperly Classifies Drivers as Independent Contractors, Denying them Benefits and Crucial Protections Under New York, Montana and New Jersey Law


Letter Sent Today Demands that FedEx Ground Change Policies or Face Lawsuit

NEW YORK, NY (October 20, 2009)- New York Attorney General Andrew M. Cuomo, Montana Attorney General Steve Bullock, and New Jersey Attorney General Anne Milgram today announced their offices’ intent to sue FedEx Ground Package System, Inc. (“FedEx Ground”) for violations of state labor laws. Today’s announcement is the latest in a string of actions taken by the Attorneys General to protect their states’ workforces and enforce labor laws.

According to the letter sent today to FedEx Ground, the company unlawfully misclassifies its drivers as independent contractors. As such, drivers do not receive Workers’ Compensation coverage through FedEx Ground. Moreover, independent contractors are not protected by anti-discrimination laws, labor relations laws, and other important laws that protect New York , Montana and New Jersey workers. At the same time, drivers are required to spend thousands of dollars out-of-pocket for their trucks, repairs, fuel and uniforms while being held to strict FedEx Ground rules that control the hours they work, the way they dress, and their ability to contract with anyone else outside the company.

“By blatantly misclassifying its drivers, FedEx Ground has denied these individuals the employment rights they are guaranteed by law,” said Attorney General Cuomo. “FedEx Ground drivers have been forced to pay thousands out of pocket for work-related expenses and adhere to strict employment policies, despite being deprived of the protections of full-time employee status. Our letter today demands that these policies be reversed or this office will not hesitate to bring legal action immediately.”

“This is an issue of fairness. By classifying their drivers as independent contractors rather than employees, FedEx Ground is denying the drivers rights and protections afforded to all workers in our state. And in the process, FedEx Ground is shifting its tax obligations onto hardworking Montanans,” said Attorney General Bullock. “These drivers are the backbone of the business and they should not have to give up the protections they are guaranteed just so FedEx Ground can circumvent our laws.”

“FedEx Ground’s failure to fairly classify and adequately protect its drivers is a violation of New Jersey ’s labor laws,” said Attorney General Anne Milgram. “This company denied its drivers the benefits they should be guaranteed, while forcing them to be financially and personally accountable for strict employment requirements. Today’s letter is a multi-state effort to get FedEx Ground to end its unlawful business practices and protect the hardworking men and women who tirelessly support the company.”

The investigation by the Attorneys General revealed that the level of control FedEx Ground exercises over its drivers merits, under New York, Montana and New Jersey state law, employee status and the protections inherent in that status. FedEx Ground strictly controls all aspects of the work of drivers doing pick-up and delivery. Hours are prescribed by FedEx Ground with drivers having almost no discretion as to the hours they work. Workers’ performance of their tasks - from the loading of their trucks to their hand-off to customers - is directed and supervised by FedEx Ground. Drivers’ uniforms are mandated by FedEx Ground, even down to the colors of drivers’ socks, and drivers’ opportunities to engage in non-FedEx Ground related work are also almost entirely constrained by FedEx Ground rules. Drivers are only allowed to use their own trucks for non-FedEx Ground purposes if the trucks are used outside of FedEx Ground working hours. Additionally, the work of FedEx Ground drivers is at the very core of FedEx Ground’s business activities; drivers are completely integrated into the overall business functions of the company.

FedEx Ground drivers must also undertake significant expenses to perform their jobs in the manner required by FedEx Ground. These expenses range from purchasing or leasing trucks for as much as $70,000, to paying approximately $40 per week for the use of a FedEx Ground uniform and scanner. Drivers must also purchase fuel and do required maintenance for their trucks, and must purchase their own Workers’ Compensation insurance, as required by FedEx Ground.

This matter is being handled by Deputy Labor Bureau Chief Patricia Kakalec under the supervision of Executive Deputy Attorney General for Social Justice Mylan Denerstein in New York and by Assistant Attorney General Jennifer Anders for Montana.
 

wyobill

Well-Known Member
Very old debate. Why is FedEx always more valuable than UPS?

FDX

Share Statistics
Shares Outstanding: 312.52M

UPS

Share Statistics
Shares Outstanding: 992.80M

3 times more shares just takes a lot more weight to push it. Do a 1 for 3 reverse split to equal UPS now having 300m plus shares and you're looking at a $160 per share general price range. I like the Warren Buffet thinking when it comes to stock splits.

So back in March when UPS and Fed-Ex was 39 bucks a share only a fool
would have picked UPS over Fed-Ex as a investment?
 

KDee

New Member
Hi all,
I should have probably posted in the intro section first, but, I would like to ask a question or two about the reason I finally decided to register here. Can someone out there tell me why there hasn't been an SEC investagation yet into how the institutions are keeping the value of FDX up? Does any of this stuff mean anything? NA PE Ratio, what's that mean.

UPSvsFedX.jpg


How can it continue to grow and UPS just sits? Today it said investors are looking for a safe haven. So lets buy something leveraged with numerous potential problems down the road.
 

clueless

Well-Known Member
Hi all,
I should have probably posted in the intro section first, but, I would like to ask a question or two about the reason I finally decided to register here. Can someone out there tell me why there hasn't been an SEC investagation yet into how the institutions are keeping the value of FDX up? Does any of this stuff mean anything? NA PE Ratio, what's that mean.

UPSvsFedX.jpg


How can it continue to grow and UPS just sits? Today it said investors are looking for a safe haven. So lets buy something leveraged with numerous potential problems down the road.

What's to 'investigate'? Really? Exactly what securities laws are being violated? The proportion of stock held by institutions for FDX and UPS is 79% and 70% respectively. (source: Nasdaq institutional holdings data). Therefore both companies' shares are predominantly owned by institutions and you can also say ' institutions are keeping the value of UPS up' and should therefore also be 'investigated.' You might try reading the prior post I made on this thread regarding valuation. the "NA PE Ratio" for FDX is referring to the fact that FedEx's TTM (trailing twelve months) earnings were negative.

If you look at the relative valuations, you will see, in fact, that the market is placing a higher valuation on UPS' metrics in terms of:

12 Month Normalized P/E
Price to Sales (TTM)
Price to Book (MRQ)
Price/Tangible Book Ratio
Price/Cash Flow Ratio

If the market were to place the same valuation as FedEx in terms of normalized earnings, UPS would be valued at $41 per share, not $58. If the market were to value UPS the same as FDX in terms of Price to Sales, UPS would be trading at $37.75 per share. If the market were to give UPS the same valuation in terms of price/book, UPS would be at $14.10 per share. If the market were to value UPS the same as FDX in terms of price/tangible book, UPS would be currently trading at $10.49 per share. If the market placed the same valuation on UPS as it does on FedEx in terms of price to cash flow, UPS would be trading at $50.45. Feel better now? The market is not necessarily 'undervaluing' UPS at $58--so please save the conspiracy theories for the Warren Commission. BTW--I actually have been a victim of real securities fraud. There is nothing, nothing that indicates this is the case with FDX vs UPS.

As far as the dividend yield you circled--the 3.1% means that you are 'earning' via dividend 3.10% whereas you are only earning .49% by investing in FedEx. (for UPS which pays a 45 cent dividend per share per quarter = $1.80 annual dividend per share divided by the current stock price of $58.13 = 3.10%; for FDX which pays 11 cent dividend per share per quarter = 44 cents per share annually divided by current stock price of $90.40 per share = .49%).

So the dividend yield varies inversely as stock price varies. Lower stock price = higher dividend yield, assuming no change in dividend policy. Obviously, from that perspective, UPS is the better investment.

HOWEVER, there is alot more to an investment than purely dividends. First off, dividend payments to shareholders are not like interest payments to debtholders---they are not guaranteed. The Board of Directors can always cut them at will. Unlikely, but it can happen. Secondly, and more importantly, investors look to capital appreciation (cap gains) as much as they look to dividends for a return on investment. Dividends are only part of the story.

One last point that I should've made before regarding FDX's rise relative to UPS' (FDX has risen over 150% off its 52-week low, whereas UPS is only up ~50%). UPS' market cap is ~$40B whereas FDX's is only ~$28B--therefore it takes more investment firepower to move UPS' stock--over 40% more. Imo, that explains partly why UPS hasn't participated as much in the overall market rally as FDX has.

HTH
 

moreluck

golden ticket member
JPMorgan's 2010 top picks

Wed Dec 9, 2009 6:23pm EST

I scanned, but don't see FedEx on this list.




Stocks



NEW YORK, Dec 9 (Reuters) - Thomas Lee, JPMorgan chief U.S.equity strategist, on Wednesday announced the following stocks,covering a broad range of sectors, as his team's top picks for2010. NAME YTD PERFORMANCE
Rockwell Collins (COL.N) 41 pct
United Parcel Service (UPS.N) 4.7 pct
General Electric (GE.N) -4.1 pct
Chicago Bridge & Iron (CBI.N) 80.1 pct
Caterpillar Inc (CAT.N) 24.8 pct
Knightsbridge Tankers (VLCCF.O) -9.8 pct
Delta Airlines (DAL.N) -14.5 pct
TRW Automotive (TRW.N) 550 pct
PepsiCo (PEP.N) 12 pct
Vulcan Materials (VMC.N) -32 pct
Las Vegas Sands (LVS.N) 153 pct
KB Home (KBH.N) -5.1 pct
Clorox (CLX.N) 10.5 pct
Wyndham Worldwide (WYN.N) 205 pct
General Mills (GIS.N) 12.8 pct
Darden Restaurants (DRI.N) 13.2 pct
Costco Wholesale Corp (COST.O) 11.7
pct Kroger Co (KR.N) -24.2 pct
Lowe's Cos Inc (LOW.N) 6.1 pct
Philip Morris (PM.N) 12.3 pct
FPL Group (FPL.N) 6.5 pct
Apache Corp (APA.N) 24.6 pct
Bank of America (BAC.N) 9.9 pct
FirstMerit (FMER.O) -2.6 pct
Franklin Resources (BEN.N) 69.8 pct
Prudential Financial (PRU.N) 58.3 pct
ACE Limited (ACE.N) -6.1 pct
CB Richard Ellis (CBG.N) 175.5 pct
Assured Gauranty (AGO.N) 79.7 pct
Celgene (CELG.O) -2.8 pct
Incyte (INCY.O) 115.8 pct
Tenet Healthcare (THC.N) 313.9 pct
Medco (MHS.N) 53.8 pct
UnitedHealth UHN.N 7.1 pct
St Jude Medical (STJ.N) 11.2 pct
Thermo Fisher Scientific (TMO.N) 40.7 pct
Pfizer (PFE.N) 3 pct
Biovail (BVF.N) 43.8 pct
U.S. Steel (X.N) 25.7 pct
Ashland (ASH.N) 261 pct
Goldcorp (GG.N) 29.5 pct
Owens Illinois (OI.N) 18.8 pct
Interpublic Group (IPG.N) 75 pct
Viacom (VIA.N) 58 pct
Equifax (EFX.N) 12.9 pct
Amazon.com Inc (AMZN.O) 156.1 pct
tw telecom inc (TWTC.O) 82.9 pct
Itron Inc (ITRI.O) -1 pct
Robert Half Int'l (RHI.N) 20.8 pct
Ericsson (ERICb.ST) 21.8 pct
ShoreTel Inc (SHOR.O) 31.4
pct Cognizant (CTSH.O) 144 pct
Apple Inc (AAPL.O) 131.8 pct
Apollo Group (APOL.O) -27.8
pct Symantec (SYMC.O) 30.6 pct
Verisign (VRSN.O) 14.5 pct

Source: JPMorgan (Note: This list not in any order of preference) (Reporting by Ellis Mnyandu; Editing by Leslie Adler)
 
D

Dis-organized Labor

Guest
Todays closing bell has FDX over 90 bucks.

SKYKING BIRDMAN / Cookdaddy / AIRBUSFXR:

Why do you think that anyone would give a crap about your opinion or your Posts? You've been exposed as a fraud and a troublemaker. Go away and come back as a normal person; not some advocate for a cause that no one (except you) supports. N2R Hah!!!
 

moreluck

golden ticket member
FDX not lookin' so good today. A couple weeks ago they refigured their reporting numbers......and gave a "Rah Rah" outlook. Well, apparently the street wasn't happy with their REAL numbers.

They're paying for it now. UPS is down too, but 4x less.
 

unionman

Well-Known Member
FDX not lookin' so good today. A couple weeks ago they refigured their reporting numbers......and gave a "Rah Rah" outlook. Well, apparently the street wasn't happy with their REAL numbers.

They're paying for it now. UPS is down too, but 4x less.
Buy on the rumor and sell on the news. Where have you been as an investor? They came out a few weeks ago and said they were upping there forcast from .85 cents a share to 1.10 and the stock took off.
 

moreluck

golden ticket member
Comparing Shipping Giants: FedEx vs. UPS

By Brandon Clay


On a lethargic day in terms of market action on Monday, the day’s biggest news arrived in the after-hours session when FedEx (FDX) boosted its profit guidance for the current quarter to $1.10 a share from 65-95 cents a share. FedEx cited increased demand for its international and ground shipping services as the catalyst for the robust quarter. Throw in the fact that the holiday shopping season is usually the busiest time of year for FedEx and its chief rival UPS (UPS) and it may be time to take a look at adding one of these stocks to your portfolio.

We’ve previously looked at stocks and ETFs that benefit during economic recoveries. FedEx and UPS are two names that are intimately tied to the overall health of the U.S. and global economies. Since these two companies face little in the way of additional domestic competition and do essentially the same thing, investors should only own one of these names. So it’s decision time. Which package shipper belongs in your portfolio? In spite of the cheery news delivered by FedEx, UPS is probably the better bet for longer-term investors.

Never mind that UPS is about twice as big as FedEx in terms of market cap. UPS typically trades at a premium to FedEx, but take a look at the forward P/E ratios. UPS is currently trading at a discount to its biggest rival. UPS is also the superior dividend play, both in dollar and yield terms. While UPS pays an annual dividend of $1.80 a share good for a yield of 3.1%, FedEx pays just 44 cents for a yield of 0.5%. UPS has increased its dividend at an annualized rate of about 13% over the last five years. Considering that dividends account for a significant chunk of a portfolio’s returns over time, a higher yield and payout are something to behold.
Yes, FedEx shares have far outperformed UPS on a year-to-date basis. FDX has gained around 39% compared to about 8% for UPS. So while it may easy to view UPS as a laggard, the other side of that coin is that this supposed laggard may also be poised to deliver some opportunity for astute investors. Consider this anecdote. FedEx hired 35,000 seasonal workers to help with the holiday shipping rush. UPS hired 50,000. That should not be used as a deciding factor about which stock to buy, but it does highlight the fact that FedEx is expecting big things for investors. UPS shareholders could be beneficiaries of the same good news.
UPS was the first of the two companies to announce that it is raising shipping rates for 2010. The Street’s reaction to the news has been favorable. The bottom line is FedEx is getting all the good press these days and most investors seem to prefer the stock over UPS. That’s fine. But ignoring the power of the UPS dividend and the company’s value stock status could prove to be a mistake that smart investors won’t want to make. At the least, FDX and UPS performance bodes well for the economy during this holiday season.




__._,_.___
 

unionman

Well-Known Member
Comparing Shipping Giants: FedEx vs. UPS

By Brandon Clay


On a lethargic day in terms of market action on Monday, the day’s biggest news arrived in the after-hours session when FedEx (FDX) boosted its profit guidance for the current quarter to $1.10 a share from 65-95 cents a share. FedEx cited increased demand for its international and ground shipping services as the catalyst for the robust quarter. Throw in the fact that the holiday shopping season is usually the busiest time of year for FedEx and its chief rival UPS (UPS) and it may be time to take a look at adding one of these stocks to your portfolio.

We’ve previously looked at stocks and ETFs that benefit during economic recoveries. FedEx and UPS are two names that are intimately tied to the overall health of the U.S. and global economies. Since these two companies face little in the way of additional domestic competition and do essentially the same thing, investors should only own one of these names. So it’s decision time. Which package shipper belongs in your portfolio? In spite of the cheery news delivered by FedEx, UPS is probably the better bet for longer-term investors.

Never mind that UPS is about twice as big as FedEx in terms of market cap. UPS typically trades at a premium to FedEx, but take a look at the forward P/E ratios. UPS is currently trading at a discount to its biggest rival. UPS is also the superior dividend play, both in dollar and yield terms. While UPS pays an annual dividend of $1.80 a share good for a yield of 3.1%, FedEx pays just 44 cents for a yield of 0.5%. UPS has increased its dividend at an annualized rate of about 13% over the last five years. Considering that dividends account for a significant chunk of a portfolio’s returns over time, a higher yield and payout are something to behold.
Yes, FedEx shares have far outperformed UPS on a year-to-date basis. FDX has gained around 39% compared to about 8% for UPS. So while it may easy to view UPS as a laggard, the other side of that coin is that this supposed laggard may also be poised to deliver some opportunity for astute investors. Consider this anecdote. FedEx hired 35,000 seasonal workers to help with the holiday shipping rush. UPS hired 50,000. That should not be used as a deciding factor about which stock to buy, but it does highlight the fact that FedEx is expecting big things for investors. UPS shareholders could be beneficiaries of the same good news.
UPS was the first of the two companies to announce that it is raising shipping rates for 2010. The Street’s reaction to the news has been favorable. The bottom line is FedEx is getting all the good press these days and most investors seem to prefer the stock over UPS. That’s fine. But ignoring the power of the UPS dividend and the company’s value stock status could prove to be a mistake that smart investors won’t want to make. At the least, FDX and UPS performance bodes well for the economy during this holiday season.




__._,_.___

If you have any large amounts of UPS stock and your not in doomsday mode, your a fool. UPS's stock has absolutely no growth possibilities because there to busy cutting costs instead of going after market share like FEDX is.
 
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