Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
FDX vs. UPS
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="clueless" data-source="post: 648488" data-attributes="member: 15572"><p>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 <em>negative</em>. </p><p></p><p>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:</p><p></p><p>12 Month Normalized P/E </p><p>Price to Sales (TTM)</p><p>Price to Book (MRQ) </p><p>Price/Tangible Book Ratio</p><p>Price/Cash Flow Ratio</p><p></p><p>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.</p><p></p><p>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%).</p><p></p><p>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.</p><p> </p><p>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. </p><p></p><p>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.</p><p></p><p>HTH</p></blockquote><p></p>
[QUOTE="clueless, post: 648488, member: 15572"] 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 [I]negative[/I]. 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 [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
FDX vs. UPS
Top