BEST (NYSE:BEST) vs. United Parcel Service (NYSE:UPS) Financial Comparison

United Parcel Service (NYSE:UPS) and BEST (NYSE:BEST) are both transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Dividends

United Parcel Service pays an annual dividend of $3.84 per share and has a dividend yield of 3.1%. BEST does not pay a dividend. United Parcel Service pays out 53.0% of its earnings in the form of a dividend. United Parcel Service has raised its dividend for 9 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for United Parcel Service and BEST, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Parcel Service 1 10 8 1 2.45
BEST 1 0 1 0 2.00

United Parcel Service presently has a consensus target price of $120.82, suggesting a potential downside of 1.29%. BEST has a consensus target price of $6.50, suggesting a potential upside of 19.49%. Given BEST’s higher probable upside, analysts plainly believe BEST is more favorable than United Parcel Service.

Insider & Institutional Ownership

55.6% of United Parcel Service shares are owned by institutional investors. Comparatively, 19.1% of BEST shares are owned by institutional investors. 0.2% of United Parcel Service shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

United Parcel Service has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, BEST has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Earnings & Valuation

This table compares United Parcel Service and BEST’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Parcel Service $71.86 billion 1.46 $4.79 billion $7.24 16.91
BEST $4.07 billion 0.49 -$73.88 million ($0.21) -25.90

United Parcel Service has higher revenue and earnings than BEST. BEST is trading at a lower price-to-earnings ratio than United Parcel Service, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares United Parcel Service and BEST’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Parcel Service 6.56% 175.60% 12.26%
BEST -1.04% -8.34% -2.35%

Summary

United Parcel Service beats BEST on 15 of the 18 factors compared between the two stocks.

United Parcel Service Company Profile

United Parcel Service, Inc. provides letter and package delivery, specialized transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services in Europe, the Asia Pacific, Canada and Latin America, the Indian sub-continent, the Middle East, and Africa. This segment offers guaranteed time-definite express options, including Express Plus, Express, and Express Saver. The Supply Chain & Freight segment provides international air and ocean freight forwarding, customs brokerage, distribution and post-sales, and mail and consulting services in approximately 220 countries and territories; and less-than-truckload and truckload services to customers in North America. This segment also offers shipping, visibility, and billing technologies; and insurance, financing, and payment services. The company operates a fleet of approximately 123,000 package cars, vans, tractors, and motorcycles; and owns 47,000 containers that are used to transport cargo in its aircraft. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.

BEST Company Profile

BEST Inc. operates as a smart supply chain service provider in the People's Republic of China. Its proprietary technology platform enables its ecosystem participants to operate their businesses through various SaaS-based applications. The company applies its technologies to a range of applications, such as network and route optimization, swap bodies, sorting line automation, smart warehouses, and store management. It offers integrated services and solutions across the supply chain, including warehouse management, order fulfillment, express delivery, freight, and other services for multinational and corporate customers, as well as small and medium enterprises. The company also provides express delivery services; and door-to-door integrated cross-border supply chain services to and from China, including international express, less-than-truckload, fulfillment, reverse logistics, and freight forwarding through its network, and transportation and warehouse partners. In addition, it operates real-time bidding platform to source truckload capacity from independent transportation service providers and agents; and offers online merchandise sourcing and store management services for convenience stores, as well as B2C services, such as parcel pick-up and drop-off, and bill payment services. Further, BEST Inc. provides various value-added services, including customized financial services, including fleet and equipment finance leases; and centralized sourcing of products and services, such as bulk procurement of trucks and accessories. The company was founded in 2007 and is headquartered in Hangzhou, the People's Republic of China.

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