Actually on April 15, 2005 UPS closed at 68.75 and FDX at 83.95. During the past year, FDX sank much further than UPS and is a more variable stock. The one telling point is that the market over the past year has valued UPS more highly with a normalized 12 month p/e ratio of 34.9 (from Forbes) and FDX at 24.7 ( also from Forbes). The actual share price is meaningless if you do not factor in a number of other elements such as the number of shares available.
The P/E ratio you referenced is known as a 'relative valuation' and you're absolutely correct--this type of value is far more telling of a company's valuation relative to another company than the absolute stock prices. The P/E and similar ratios tell an investor how many dollars 'the market' is willing to pay for, say, a dollar of the company's earnings, its sales, its free cash flow, etc. It should be noted that these ratios are 'double-edged swords'. While a high relative valuation indicates that investors are more highly valuing a particular company's assets, earnings, sales, etc., it also can indicate that the stock is 'overvalued'.
This is how UPS fares relative to FDX.
P/E Ratio (TTM)--Yahoo--UPS 'more expensive/higher valued'
UPS 35.22
FDX N/A (note: ttm earnings negative)
12 Month Normalized P/E Ratio--Forbes--UPS 'more expensive/higher valued'
UPS 34.9
FDX 24.7
PEG (5 yr expected)--Yahoo-- FDX 'more expensive/higher valued'
UPS 3.37
FDX 4.36
Price to Sales (TTM)--Reuters-- UPS 'more expensive/higher valued'
UPS 1.26
FDX 0.82
Price to Book (MRQ) --Reuters-- UPS 'more expensive/higher valued'
UPS 8.23
FDX 2.00
Price/Tangible Book Ratio--Forbes--UPS 'more expensive/higher valued'
UPS 13.17
FDX 2.38
Price/Cash Flow Ratio--Forbes--UPS 'more expensive/higher valued'
UPS 16.9
FDX 14.7
Price/Free Cash Flow Ratio--Forbes--FDX 'more expensive/higher valued'
UPS 25.6
FDX 249.8
However, I think the OP is referencing the run in the stock prices during the last year. Using the Forbes data-- UPS' current price is 'only' 52% above its 52-week low of $37.99 whereas FDX's current price is 160% above its 52-week low of $34.02. I believe that's where the concern is. As for me, as an individual investor, while I am concerned as to exactly
why the market is reluctant to push UPS' stock to higher levels, the current stock price indicates there is more 'room to run'-IOW this level
might be a 'buying opportunity.'