FedEx vs. UPS: Analyst's Toolkit

Discussion in 'The Latest UPS Headlines' started by cheryl, Dec 9, 2009.

  1. cheryl

    cheryl I started this. Staff Member

    FedEx vs. UPS: Analyst's Toolkit - The Street

    Along with Black Friday and Cyber Monday, Brown Monday is finding its way into the vernacular.

    While Black Friday is supposedly the day retailers become profitable and Cyber Monday is when online retailers see Web traffic spike for the holiday season, Brown Monday refers to the last day in which customers can order something online and be assured it will arrive in time for Christmas. ("Brown" refers to shipping boxes.) Brown Monday is a reminder that shippers also cash in during this time of year.

    FedEx (FDX) and UPS (UPS), are benefiting from consumers' shift to online sales. Even though FedEx has aligned itself with businesses, more than 60% of the company's revenue comes from express services. UPS is more of a consumer-oriented company, with 40% of its revenue derived from domestic ground services. Employing financial metrics can help differentiate the two to determine which business and which model is a better bet before the holiday season's revenue gets tallied.