Aramex vs FedEx Which Is a Smarter Choice?

Aramex and FedEx are two leading players in the global logistics and delivery services industry. Aramex, based in the United Arab Emirates, has shown steady growth in recent years, benefitting from increasing e-commerce activity in the Middle East and Africa. On the other hand, FedEx, a well-established American company, has a strong presence in the international shipping market. Both companies have experienced fluctuations in their stock prices due to changing market conditions and competitive pressures. Investors should carefully analyze the financial performance and growth prospects of these companies before making investment decisions.

Aramex or FedEx?

When comparing Aramex and FedEx, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aramex and FedEx.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aramex has a dividend yield of -%, while FedEx has a dividend yield of 2.3%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aramex reports a 5-year dividend growth of -10.17% year and a payout ratio of 0.00%. On the other hand, FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aramex P/E ratio at 25.30 and FedEx's P/E ratio at 17.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aramex P/B ratio is 1.39 while FedEx's P/B ratio is 2.63.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aramex has seen a 5-year revenue growth of 0.12%, while FedEx's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aramex's ROE at 5.54% and FedEx's ROE at 15.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are د.إ2.33 for Aramex and $288.70 for FedEx. Over the past year, Aramex's prices ranged from د.إ1.93 to د.إ2.82, with a yearly change of 46.11%. FedEx's prices fluctuated between $234.45 and $313.84, with a yearly change of 33.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.