Union vs UPS Which Is More Profitable?

Union vs UPS stocks refer to the comparison between the performance of the two companies' stocks: Union Pacific Corporation and United Parcel Service. Union Pacific is a leading transportation company in the railroad industry, while UPS is a prominent player in the global package delivery market. Investors closely track the financial results and market trends of both companies to analyze the potential for growth and profitability. Understanding the differences and similarities between Union and UPS stocks can help investors make informed decisions about their investment portfolios.

Union or UPS?

When comparing Union 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 Union 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. Union has a dividend yield of 2.25%, while UPS has a dividend yield of 5.37%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Union reports a 5-year dividend growth of 4.56% year and a payout ratio of -9.67%. 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 Union P/E ratio at -4.29 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. Union P/B ratio is 0.79 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, Union has seen a 5-year revenue growth of -0.03%, while UPS's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Union's ROE at -16.78% and UPS's ROE at 34.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩5420.00 for Union and $119.33 for UPS. Over the past year, Union's prices ranged from ₩3360.00 to ₩7500.00, with a yearly change of 123.21%. 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.