BEST (NYSE:BEST) and United Parcel Service (NYSE:UPS) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Valuation & Earnings
This table compares BEST and United Parcel Service’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BEST||$4.07 billion||0.38||-$73.88 million||($0.21)||-19.81|
|United Parcel Service||$71.86 billion||1.36||$4.79 billion||$7.24||15.73|
Risk and Volatility
BEST has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, United Parcel Service has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Insider & Institutional Ownership
20.0% of BEST shares are held by institutional investors. Comparatively, 55.5% of United Parcel Service shares are held by institutional investors. 41.7% of BEST shares are held by insiders. Comparatively, 0.2% of United Parcel Service shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares BEST and United Parcel Service’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%|
United Parcel Service pays an annual dividend of $3.84 per share and has a dividend yield of 3.4%. 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 increased its dividend for 9 consecutive years.
This is a summary of recent ratings for BEST and United Parcel Service, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Parcel Service||1||10||7||1||2.42|
BEST currently has a consensus target price of $6.50, suggesting a potential upside of 56.25%. United Parcel Service has a consensus target price of $119.93, suggesting a potential upside of 5.29%. Given BEST’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BEST is more favorable than United Parcel Service.
United Parcel Service beats BEST on 14 of the 18 factors compared between the two stocks.
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.
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.
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