United Parcel Service (NYSE:UPS) & TFI International (NYSE:TFII) Financial Comparison

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

Analyst Recommendations

This is a summary of recent recommendations for United Parcel Service and TFI International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Parcel Service 1 10 13 1 2.56
TFI International 0 2 11 0 2.85

United Parcel Service presently has a consensus price target of $204.39, indicating a potential downside of 0.83%. TFI International has a consensus price target of $94.23, indicating a potential upside of 3.47%. Given TFI International’s stronger consensus rating and higher probable upside, analysts plainly believe TFI International is more favorable than United Parcel Service.

Dividends

United Parcel Service pays an annual dividend of $4.08 per share and has a dividend yield of 2.0%. TFI International pays an annual dividend of $0.92 per share and has a dividend yield of 1.0%. United Parcel Service pays out 49.6% of its earnings in the form of a dividend. TFI International pays out 27.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. United Parcel Service has increased its dividend for 1 consecutive years and TFI International has increased its dividend for 1 consecutive years.

Volatility and Risk

United Parcel Service has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, TFI International has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Valuation & Earnings

This table compares United Parcel Service and TFI International’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Parcel Service $84.63 billion 2.12 $1.34 billion $8.23 25.04
TFI International $3.78 billion 2.24 $275.67 million $3.30 27.60

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

Profitability

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

Net Margins Return on Equity Return on Assets
United Parcel Service 5.87% 193.06% 13.74%
TFI International 7.15% 19.30% 8.52%

Insider & Institutional Ownership

56.1% of United Parcel Service shares are held by institutional investors. Comparatively, 50.7% of TFI International shares are held by institutional investors. 0.1% of United Parcel Service shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

United Parcel Service beats TFI International on 11 of the 17 factors compared between the two stocks.

United Parcel Service Company Profile

United Parcel Service, Inc. provides letter and package delivery, 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. 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 200 countries and territories; and less-than-truckload and truckload services to customers in North America. This segment also offers truckload brokerage services; supply chain solutions to the healthcare and life sciences industry; shipping, visibility, and billing technologies; and financial and insurance services. The company operates a fleet of approximately 127,000 package cars, vans, tractors, and motorcycles; and owns 58,000 containers that are used to transport cargo in its aircraft. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.

TFI International Company Profile

TFI International Inc. provides transportation and logistics services in the United States, Canada, and Mexico. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank container, and dedicated services, as well as TL brokerage services. This segment carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2020, the company had 7,867 tractors, 25,520 trailers, and 9,926 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. is headquartered in Saint-Laurent, Canada.

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