EMS vs UPS Which Is More Reliable?

EMS (Express Mail Service) and UPS (United Parcel Service) are two of the biggest players in the global shipping and logistics industry. Both companies offer reliable and efficient delivery services, but their stocks have been subject to different market trends and investor sentiment. EMS, a subsidiary of the Universal Postal Union, has seen strong performance due to its association with the postal service, while UPS has faced challenges from rising competition and changing consumer preferences. This article will explore the factors driving the performance of EMS vs UPS stocks.

EMS or UPS?

When comparing EMS 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 EMS 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. EMS has a dividend yield of 0.16%, while UPS has a dividend yield of 5.37%. 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, UPS reports a 5-year dividend growth of 11.17% year and a payout ratio of 93.38%.

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 19.25 and UPS's P/E ratio at 17.98. 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 4.02 while UPS's P/B ratio is 6.22.

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 UPS's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with EMS's ROE at 22.96% and UPS's ROE at 34.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹628.05 for EMS and $119.33 for UPS. Over the past year, EMS's prices ranged from ₹353.40 to ₹1016.85, with a yearly change of 187.73%. UPS's prices fluctuated between $109.40 and $158.95, with a yearly change of 45.29%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.