Why UPS’ Higher Margins Can Make You a Profit

Discussion in 'The Latest UPS Headlines' started by cheryl, Mar 27, 2014.

  1. cheryl

    cheryl I started this. Staff Member

    Why UPS’ Higher Margins Can Make You a Profit - Motley Fool

    Shipping and logistics is a business where capital intensity and network size really matters. The world's largest parcel delivery company, United Parcel Service, is showing its biggest two competitors, FedEx and DHL, why its business structure generates higher margins, and thus superior profitability.

    To sum it up, the factors that make UPS a great investment case and an amazing company to hold for long-term investment are its greater package volume, concentration on high-margin ground shipping, and use of a single network rather than parallel air and ground operations.

    However, its competitors should not be underestimated, as they hold a good position and well-established brands as well.
     
  2. bbsam

    bbsam Moderator Staff Member

    LOL. I see the Motley Fool's love affair with UPS continues. From certain people around BC, I'm not sure some folks in Atlanta see things so optimistically.
     
  3. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    He doesn't really say anything except UPS is a long term hold.
     
  4. bbsam

    bbsam Moderator Staff Member

    Yes but with disregard to delta. He speaks of domestic ground volume as a single number. If he is talki g long term hold, shouldn't he discuss trending market share and the ability to hold it?
     
  5. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Honestly, I never paid much attention to Motley Fool.
    Chimps throwing darts at the wall.
     
  6. oldngray

    oldngray nowhere special

    Motley Fool is only slightly better than Cramer. They are better than him because they get lucky sometimes though.
     
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  7. cheryl

    cheryl I started this. Staff Member