UPS eating FEDEX up?

Oldfart

Well-Known Member
Brown. I have never seen fdx more expensive than ups.
Fdx stock has been higher than UPS stock for YEARS. Fdx hasn't traded at 107 in a long time. UPS is down from its 52 week high while FDX continues to set new highs. Stock price and earnings are totally different. I have no idea how earnings compare.
 

UpstateNYUPSer(Ret)

Well-Known Member
Fdx stock has been higher than UPS stock for YEARS. Fdx hasn't traded at 107 in a long time. UPS is down from its 52 week high while FDX continues to set new highs. Stock price and earnings are totally different. I have no idea how earnings compare.

I thought the same thing-----he is not referring to stock price but rather to PE.
 

bacha29

Well-Known Member
Fdx stock has been higher than UPS stock for YEARS. Fdx hasn't traded at 107 in a long time. UPS is down from its 52 week high while FDX continues to set new highs. Stock price and earnings are totally different. I have no idea how earnings compare.
Your comments made me curious so I looked it up. Right now UPS is trading at 27 times earnings. Fedex is trading at 29 times earnings. That's a little higher than you want. UPS has a market cap of 93 billion compared to X at 54 billion. Thing to remember is that the traded UPS stock is a Class B stock with no voting rights that UPS floated about 20 years ago and with the proceeds primarily used to retire debt. It has a higher yield at 3.11 % than X at 0.83% but a B Class is designed to be a dividend stock but 3.11% is nothing exceptional. The thing that would concern me is that some US economic growth projections for this year and next are running around 2-2.25%. If it holds true then both companies will go on their merry old way but perhaps more bottom line focused . Keep an eye on their cap X budgets in the days ahead.
 

Oldfart

Well-Known Member
Your comments made me curious so I looked it up. Right now UPS is trading at 27 times earnings. Fedex is trading at 29 times earnings. That's a little higher than you want. UPS has a market cap of 93 billion compared to X at 54 billion. Thing to remember is that the traded UPS stock is a Class B stock with no voting rights that UPS floated about 20 years ago and with the proceeds primarily used to retire debt. It has a higher yield at 3.11 % than X at 0.83% but a B Class is designed to be a dividend stock but 3.11% is nothing exceptional. The thing that would concern me is that some US economic growth projections for this year and next are running around 2-2.25%. If it holds true then both companies will go on their merry old way but perhaps more bottom line focused . Keep an eye on their cap X budgets in the days ahead.
I have no idea what you just said. FDX closed at 206.15. UPS at 106.68. That's all I know.
 

FedGT

Well-Known Member
It is fairly simple. Stock price is to a degree irrelevant by itself.

Ups is priced at $107 per share the important part that goes along with it is there are 688,770,000 shares outstanding for the company. $107 per share times 688,770,000 shares equals roughly a $73.5 billion valuation.

Even though FedEx is $206 per share they only have 267.38 million shares outstanding (much, much less than half the shares of UPS) which equates to a valuation of $55.12 billion.

Complicating matters we could dive into P/E ratios but instead I will go long story short. FedEx has a very slightly higher P/E ration which means the stock price is slightly more expensive than UPS because its stock price Is selling 1.3% higher on their earnings.
 

zeev

Well-Known Member
Sure seems like they are stomping us in the ground...We have no freight and UPS just keep booming. When does Fred and the boys start to take freight, just to have freight, and not worry bout margins? We have 40,000 employees at express with something to do, just not enough to do!!! They will tell you get sales leads lol lol lol whatever they need to get the accts.. They have the power to cut deals. Was told 15 years ago express would be a" niche" company lol. Think the upper crust would like to cut all routes just so ground could have the business so their "margins look good"..Its seriously has gotten to be a joke at express...Where do they find these managers?????? lol lol lol Thoughts? Oh p.s. wouldn't it be great they would buy us 20 year+ employees out?
Fire 20 year+ not buy out
 

vantexan

Well-Known Member
That helps a lot. Fact is that FedEx went through cost cutting measures to beef up profits, and increased it's dividend as a result. That makes it attractive to Wall Street. The demand increased it's share value. Wall Street likes when a company plays ball with it. Everyone knows UPS is a solid company but it is also a company burdened by a union. Not knocking the union, just saying from their perspective UPS may not deliver what they're looking for with the overhead UPS has. It's not a popularity contest. The higher share price makes exec's wealthier, and Wall Street rewards those who do what it takes to get it. Even if it means running over employees to do so, something UPS can't do with a union contract.
 

Oldfart

Well-Known Member
Berkshire pays no dividends, A or B.



And?
Who cares. Give me 2 shares of Class A and I won't need any dividends.


My post about class A was in response to someone mistakenly thinking the stock was selling for $165. In reality, it is close to $250k or so.
 

1989

Well-Known Member
I have no idea what you just said. FDX closed at 206.15. UPS at 106.68. That's all I know.
Price is what you pay. Value is what you get. It will take ups 27.4 years of earnings to make $107 (its stock price) it will take fdx 29.24 years to earn its stock price of $206.40.

If ups retired 50% of its outstanding shares, it would be (at the same PE) $214 a share. Still cheaper than fdx.

It would take amzn, on the other hand, 183 years. Which is amazing, because just 8 years ago it was at about 850 years.
 

dvalleyjim

Well-Known Member
Fdx stock has been higher than UPS stock for YEARS. Fdx hasn't traded at 107 in a long time. UPS is down from its 52 week high while FDX continues to set new highs. Stock price and earnings are totally different. I have no idea how earnings compare.
You can do good when you have a free labor force that can never unionize. It's called crony capitalism
 
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