FedEx vs Sysco Which Is More Reliable?

FedEx and Sysco are two powerhouse companies in the stock market, operating in completely different sectors. FedEx is a global leader in logistics, shipping, and e-commerce, while Sysco specializes in the foodservice industry. Both companies have shown consistent growth and profitability over the years, attracting investors looking for stable returns. However, their stocks have faced different challenges and opportunities, with FedEx benefiting from the rise of e-commerce and Sysco navigating through fluctuations in the food industry. Investors must carefully analyze the performance of these stocks to make well-informed decisions.

FedEx or Sysco?

When comparing FedEx and Sysco, 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 Sysco.

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 1.92%, while Sysco has a dividend yield of 2.51%. 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, Sysco reports a 5-year dividend growth of 6.58% year and a payout ratio of 51.82%.

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 17.18 and Sysco's P/E ratio at 20.36. 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 2.56 while Sysco's P/B ratio is 17.91.

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 Sysco's is 0.34%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with FedEx's ROE at 15.00% and Sysco's ROE at 90.60%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $278.80 for FedEx and $80.23 for Sysco. Over the past year, FedEx's prices ranged from $234.45 to $313.84, with a yearly change of 33.86%. Sysco's prices fluctuated between $69.03 and $82.89, with a yearly change of 20.08%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.