ATS vs UPS Which Is More Attractive?

ATS Inc. and UPS Inc. are two major players in the logistics and transportation industry, each offering unique opportunities for investment. While ATS focuses primarily on freight transportation and logistics services, UPS is a more diverse company offering a wide range of services including package delivery, freight forwarding, and supply chain solutions. Both companies have experienced steady growth and profitability in recent years, making them attractive options for investors looking to capitalize on the expanding e-commerce market and global trade.

ATS or UPS?

When comparing ATS and UPS, 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 ATS and UPS.

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. ATS has a dividend yield of -%, while UPS has a dividend yield of 3.72%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ATS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, UPS reports a 5-year dividend growth of 12.23% year and a payout ratio of 95.08%.

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 ATS P/E ratio at 24.04 and UPS's P/E ratio at 19.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ATS P/B ratio is 2.34 while UPS's P/B ratio is 6.68.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ATS has seen a 5-year revenue growth of 1.31%, while UPS's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ATS's ROE at 10.89% and UPS's ROE at 33.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.63 for ATS and $131.24 for UPS. Over the past year, ATS's prices ranged from $24.82 to $44.70, with a yearly change of 80.10%. UPS's prices fluctuated between $123.12 and $163.82, with a yearly change of 33.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.