EMS vs FedEx Which Should You Buy?

EMS and FedEx are two leading companies in the courier and logistics industry, each with their own strengths and weaknesses. EMS, also known as China Post, is a state-owned postal service operating in China, while FedEx is a global courier and delivery company based in the United States. Both companies have seen fluctuations in their stock prices over the years, influenced by factors such as market trends, competition, and economic conditions. Investors interested in these stocks should consider factors such as revenue growth, profitability, and potential risks before making any investment decisions.

EMS or FedEx?

When comparing EMS 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 EMS 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. EMS has a dividend yield of 0.12%, while FedEx has a dividend yield of 1.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. EMS reports a 5-year dividend growth of 0.00% 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 EMS P/E ratio at 27.92 and FedEx's P/E ratio at 17.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. EMS P/B ratio is 5.41 while FedEx's P/B ratio is 2.54.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, EMS has seen a 5-year revenue growth of 1.21%, while FedEx's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EMS's ROE at 21.32% and FedEx's ROE at 15.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹845.00 for EMS and $281.85 for FedEx. Over the past year, EMS's prices ranged from ₹353.40 to ₹945.00, with a yearly change of 167.40%. 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.