FedEx vs EMS Which Is More Profitable?

FedEx and EMS are two prominent companies in the international shipping and logistics industry. While FedEx is a global leader known for its advanced technology and efficient delivery services, EMS, a subsidiary of the state-owned China Post, offers competitive rates and extensive coverage in Asia. Investors often compare the performance of FedEx and EMS stocks to determine potential investment opportunities. Both companies have their strengths and weaknesses, making them attractive options for different types of investors.

FedEx or EMS?

When comparing FedEx and EMS, 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 FedEx and EMS.

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. FedEx has a dividend yield of 1.93%, while EMS has a dividend yield of 0.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. FedEx reports a 5-year dividend growth of 15.01% year and a payout ratio of 31.63%. On the other hand, EMS reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 FedEx P/E ratio at 17.08 and EMS's P/E ratio at 29.62. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. FedEx P/B ratio is 2.54 while EMS's P/B ratio is 5.74.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $279.00 for FedEx and ₹900.55 for EMS. Over the past year, FedEx's prices ranged from $234.45 to $313.84, with a yearly change of 33.86%. EMS's prices fluctuated between ₹353.40 and ₹945.00, with a yearly change of 167.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.