United Parcel Service (NYSE:UPS – Get Free Report) and Freightos (NASDAQ:CRGO – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.
Institutional & Insider Ownership
60.3% of United Parcel Service shares are held by institutional investors. Comparatively, 22.7% of Freightos shares are held by institutional investors. 0.2% of United Parcel Service shares are held by company insiders. Comparatively, 19.6% of Freightos shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
United Parcel Service has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Freightos has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Valuation & Earnings
This table compares United Parcel Service and Freightos”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Parcel Service | $88.66 billion | 1.04 | $5.57 billion | $5.20 | 20.84 |
| Freightos | $29.92 million | 1.17 | -$17.52 million | ($0.33) | -2.01 |
United Parcel Service has higher revenue and earnings than Freightos. Freightos 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.
Analyst Ratings
This is a breakdown of current recommendations for United Parcel Service and Freightos, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Parcel Service | 2 | 11 | 11 | 1 | 2.44 |
| Freightos | 1 | 0 | 2 | 0 | 2.33 |
United Parcel Service currently has a consensus target price of $118.45, indicating a potential upside of 9.29%. Freightos has a consensus target price of $2.75, indicating a potential upside of 314.16%. Given Freightos’ higher probable upside, analysts clearly believe Freightos is more favorable than United Parcel Service.
Profitability
This table compares United Parcel Service and Freightos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Parcel Service | 4.84% | 37.78% | 8.13% |
| Freightos | -56.24% | -41.63% | -27.70% |
Summary
United Parcel Service beats Freightos on 12 of the 15 factors compared between the two stocks.
About United Parcel Service
United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express 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 comprising guaranteed time-definite express options in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The company also offers international air and ocean freight forwarding, post-sales, and mail and consulting services. In addition, it provides truckload and customs brokerage services; supply chain solutions to the healthcare and life sciences industries; fulfillment and transportation management services; and integrated supply chain and shipment insurance solutions. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
About Freightos
Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.
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