FedEx vs UPS – Which Will Deliver More to Your Portfolio?

2020-06-01

Introduction

United Parcel Service (UPS) Description

United Parcel Service, Inc. UPS operates as a logistics and package delivery company that provides supply chain management services. Its logistics services include transportation, distribution, contract logistics, ground freight, ocean freight, air freight, customs brokerage, insurance, and financing.

The firm operates through the following segments: U.S. Domestic Package, International Package, and Supply Chain and Freight. The U.S. Domestic Package segment offers a full spectrum of U.S. domestic air and ground package transportation services.

FedEx (FDX) Description

FedEx Corp. is a holding company, which engages in the provision of a portfolio of transportation, e-commerce, and business services. It operates through the following segments: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services, and Corporate, Other, and Eliminations. The FedEx Express segment consists of domestic and international shipping services for delivery of packages and freight. The FedEx Ground segment focuses on small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight services across all lengths of haul. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services, and certain back-office functions.

The Corporate, Other, and Eliminations segment includes corporate headquarters costs for executive officers and certain legal and finance functions, as well as certain other costs and credits not attributed to the company’s core business. The company was founded by Frederick Wallace Smith on June 18, 1971 and is headquartered in Memphis, TN.

In looking at FedEx and UPS, and from a value investor’s perspective, I like to buy good companies at sound valuations. I thought these would be timely and interesting to cover. FedEx is the smaller of the two. I will go over these companies in the video. We have decent valuation in both companies. UPS would theoretically be slightly a higher quality company. Both these stocks could fit the right portfolio, depending on your investment objectives.