FedEX or UPS?

[Echopapa]

Share price doesn't not indicate the value of a company. The market value of all of FedEx - $29.5B, and all of UPS - 81B. Moreover, UPS trades at a P/E of almost 25 while FedEx only trades at 20.5. Going by those metrics I'd say the market has more faith in UPS.

Consider this, UPS has over $5B cash, while Fedex has only about $1B.

Where would I work? Either...please.

It is my understanding that a high P/E ratio reflects that the stock is OVER VALUED. Which means that FedEx, while trading amost 20% higher than UPS, is still a better value.

I don't understand your argument on the sheer size of UPS capitalization. United used to have 12000 pilots.....what did that do for them? Size is no guarantee for stability. Compare the small size of the flight departement at UPS to the total company size and you will see that UPS will always be a trucking company that owns a small airline.

That said, they are both great companies and it won't be until you retire that you will find out if you have made the right choice.

 

[Rhoid]

Ex-Marine, I thought there were no ex-Marines. Anyways, nice problem you have. I have several friends at Fed-Ex who got me an interview there. They didn't seem to worried about their reputations when I turned down the Fed-ex interview to come to UPS. I'll throw a little brown into the mix. I'm new at UPS so you'll have to see through all the kool-aid I've been drinking. I like it here so far. Training is first class and it is on the FE panel. Some people may disdain it, but it is an easy way to get your feet wet in the company for a year maybe two. You are not looked down upon in the least as an FE. Almost everyone here was an FE at one time or another. The upcoming classes are having a greater number of FO's. Since new hires are going into the right seat, the company is paying senior FE's FO pay until they have a chance to upgrade. It is a little more complicated than I just said, but that is the gist of it. The company is very stable, but it is a trucking company that has airplanes. Being a former Marine you might like that. I feel very comfortabe here and everyone seems generally happy with life. Very different vibe than you get with most pax airlines. I won't say much about contract negotiations. The union seems very sharp compared to ALPA. We'll see. Rumor has 747-400's on the way. International flying is looking to increase. I'm sure you know the domiciles. Highly recommend you live at one. Scheduling seems more flexible with dropping and adding trips at Fed-ex than here. Benifits here are great. Retirement seems great, but I don't know if it will hold up for the next 25 years at either place. First year pay sucks, it's criminal. The new contract is supposed to address that. Your year starts the day you start, not when you finish training. The company does give you a hotel room until you finish IOE and perdiem as well. All uniforms, luggage, and a flight bag are given to you. I don't know what else to say. Recommend you go with whoever gives you a warm fuzzy. You can't go wrong with either place. PM me if you have more questions.

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You are certainly lucky to fly A-10s in the MI ANG in addition to working for UPS to supplement your meager first year income. Just remember that UPS IS A STABLE COMPANY WITH GREAT BENEFITS AND OPPORTUNITIES FOR UPGRADE. So enjoy SPENDING TIME WITH FAMILY, MAKING BEER, PLAYING GUITAR.

 

[kevdog]

I think what rhoid is saying is he will never get a job at either.

 

[TexaSWA]

It is my understanding that a high P/E ratio reflects that the stock is OVER VALUED. Which means that FedEx, while trading amost 20% higher than UPS, is still a better value.

I don't understand your argument on the sheer size of UPS capitalization. United used to have 12000 pilots.....what did that do for them? Size is no guarantee for stability. Compare the small size of the flight departement at UPS to the total company size and you will see that UPS will always be a trucking company that owns a small airline.

That said, they are both great companies and it won't be until you retire that you will find out if you have made the right choice.

Price of stock alone tells you nothing. You have to look at the number of outstanding shares on the market as well. a $1 stock with 1000 shares out there is the same a $2 stock with 500 shares.

High PE = Bad you are correct

 

[VABB]

Let the market decide:

FDX $94.60
UPS $72.42

Why do you think that FedEx stock is valued 20%+ more then UPS.

P.S. Look at the stock history for the last two years. They used to be roughly equal. So.........clearly the market favors FedEx over UPS for their current business model.

How about comparing accident and safety records. To the best of my knowledge, UPS has 0 hull losses. I think FedEx has somewhere around 5, and that was within a 6 year period.

Is it true that FedEx is just one more hull loss away from losing their insurance?

 

[VaB]

How about comparing accident and safety records. To the best of my knowledge, UPS has 0 hull losses. I think FedEx has somewhere around 5, and that was within a 6 year period.

Is it true that FedEx is just one more hull loss away from losing their insurance?

*YAWN*

What else ya got?

 

[klhoard]

Is it true that FedEx is just one more hull loss away from losing their insurance?

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Think about it this way. If you were providing Bill Gates auto insurance would you care how many cars he smashes up?
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Just keep raising his premiums, you know he will pay. . . .
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[SKYMASTER]

Very bold words indeed.

 

[Mr. Happy]

hemRhoid,
Are you purposely trying to alienate everyone on this board? Looks like you got yourself thrown in the penalty box...'bout time...

 

[VABB]

It is my understanding that a high P/E ratio reflects that the stock is OVER VALUED. Which means that FedEx, while trading amost 20% higher than UPS, is still a better value.

I don't understand your argument on the sheer size of UPS capitalization. United used to have 12000 pilots.....what did that do for them? Size is no guarantee for stability. Compare the small size of the flight departement at UPS to the total company size and you will see that UPS will always be a trucking company that owns a small airline.

That said, they are both great companies and it won't be until you retire that you will find out if you have made the right choice.

Hmmm, a trucking company with a much superior safety record than an airline.