UPS (United Parcel Service Inc) vs S&P 500 Comparison

UPS

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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UPS

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

UPS

S&P 500

Add Stock

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

S&P 500

UPS

FDX

DSV

002352

EXPD

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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United Parcel Service Inc
Glance View

Economic Moat

None

Market Cap

108.1B USD

Industry

Logistics & Transportation

In the sprawling arena of global logistics, United Parcel Service Inc. (UPS) stands as a towering figure, moving with a precision that embodies years of innovation and grit. Born in a Seattle basement in 1907, UPS has evolved from a small messenger company to a logistics powerhouse, commanding a fleet of brown-clad delivery trucks and a network that stretches across 220 countries and territories. At the core of its operations lies a well-oiled logistics mechanism that coordinates the pickup, transportation, and delivery of packages for businesses and consumers. Whether it's an urgent medical shipment or a last-minute holiday gift, UPS leverages advanced technology and a dedicated workforce to ensure punctual and reliable service, guiding parcels from sender to recipient with an impressive blend of efficiency and care. UPS's revenue engine hums to the tune of diverse business segments, with much of its financial might rooted in its vast domestic and international package delivery businesses. The company thrives on the complexities of global commerce, facilitating international trade with its supply chain solutions segment—offering not just freight forwarding but also customs brokerage and specialized logistics services. Furthermore, UPS integrates cutting-edge technologies, like route optimization and package tracking, reducing operational costs while enhancing customer satisfaction. By continuously adapting to the evolving demands of e-commerce and global trade, UPS not only secures its place within the logistics sector but also ensures a steady influx of revenue, making it a staple entity in the world of parcel delivery.

View UPS Analysis

UPS Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

US	FedEx Corp NYSE:FDX	Add
DE	Deutsche Post AG XETRA:DPW	Add
DK	DSV A/S CSE:DSV	Add
CN	S.F. Holding Co Ltd SZSE:002352	Add
US	Expeditors International of Washington Inc NYSE:EXPD	Add
CN	ZTO Express (Cayman) Inc HKEX:2057	Add
US	CH Robinson Worldwide Inc NASDAQ:CHRW	Add
CN	JD Logistics Inc HKEX:2618	Add
LU	InPost SA AEX:INPST	Add
FR	Compagnie De l'odet SE PAR:ODET	Add

US	FedEx Corp NYSE:FDX	Select
DE	Deutsche Post AG XETRA:DPW	Select
DK	DSV A/S CSE:DSV	Select
CN	S.F. Holding Co Ltd SZSE:002352	Select
US	Expeditors International of Washington Inc NYSE:EXPD	Select
CN	ZTO Express (Cayman) Inc HKEX:2057	Select
US	CH Robinson Worldwide Inc NASDAQ:CHRW	Select
CN	JD Logistics Inc HKEX:2618	Select
LU	InPost SA AEX:INPST	Select
FR	Compagnie De l'odet SE PAR:ODET	Select

US	FedEx Corp NYSE:FDX	Add
DE	Deutsche Post AG XETRA:DPW	Add
DK	DSV A/S CSE:DSV	Add
CN	S.F. Holding Co Ltd SZSE:002352	Add
US	Expeditors International of Washington Inc NYSE:EXPD	Add
CN	ZTO Express (Cayman) Inc HKEX:2057	Add
US	CH Robinson Worldwide Inc NASDAQ:CHRW	Add
CN	JD Logistics Inc HKEX:2618	Add
LU	InPost SA AEX:INPST	Add
FR	Compagnie De l'odet SE PAR:ODET	Add

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UPS

vs

S&P 500

Stocks Performance
UPS vs S&P 500

Performance Gap
UPS vs S&P 500

Performance By Year
UPS vs S&P 500

Competitors Performance
United Parcel Service Inc vs Peers

United Parcel Service Inc
Glance View

Company

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UPS vs S&P 500

Stocks Performance UPS vs S&P 500

Performance Gap UPS vs S&P 500

Performance By Year UPS vs S&P 500

Competitors Performance United Parcel Service Inc vs Peers

United Parcel Service Inc Glance View

Company

Help

Tools

Stocks

UPS

vs

S&P 500

Stocks Performance
UPS vs S&P 500

Performance Gap
UPS vs S&P 500

Performance By Year
UPS vs S&P 500

Competitors Performance
United Parcel Service Inc vs Peers

United Parcel Service Inc
Glance View