Deutsche Post (OTCMKTS:DPSGY – Get Free Report) and United Parcel Service (NYSE:UPS – Get Free Report) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Institutional & Insider Ownership
60.3% of United Parcel Service shares are held by institutional investors. 0.2% of United Parcel Service shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Dividends
Deutsche Post pays an annual dividend of $1.44 per share and has a dividend yield of 2.9%. United Parcel Service pays an annual dividend of $6.56 per share and has a dividend yield of 6.4%. Deutsche Post pays out 34.3% of its earnings in the form of a dividend. United Parcel Service pays out 121.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. United Parcel Service has raised its dividend for 16 consecutive years. United Parcel Service is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Deutsche Post | 0 | 0 | 0 | 0 | 0.00 |
| United Parcel Service | 1 | 11 | 8 | 1 | 2.43 |
United Parcel Service has a consensus price target of $117.41, suggesting a potential upside of 15.04%. Given United Parcel Service’s stronger consensus rating and higher possible upside, analysts plainly believe United Parcel Service is more favorable than Deutsche Post.
Profitability
This table compares Deutsche Post and United Parcel Service’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Deutsche Post | 5.32% | 20.75% | 7.21% |
| United Parcel Service | 5.08% | 37.50% | 8.21% |
Earnings & Valuation
This table compares Deutsche Post and United Parcel Service”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Deutsche Post | $99.52 billion | 0.61 | $5.65 billion | $4.20 | 11.75 |
| United Parcel Service | $88.66 billion | 0.98 | $5.57 billion | $5.38 | 18.97 |
Deutsche Post has higher revenue and earnings than United Parcel Service. Deutsche Post is trading at a lower price-to-earnings ratio than United Parcel Service, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Deutsche Post has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, United Parcel Service has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
Summary
United Parcel Service beats Deutsche Post on 13 of the 18 factors compared between the two stocks.
About Deutsche Post
Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.
About United Parcel Service
United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services comprising guaranteed time-definite express options in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The company also offers international air and ocean freight forwarding, post-sales, and mail and consulting services. In addition, it provides truckload and customs brokerage services; supply chain solutions to the healthcare and life sciences industries; fulfillment and transportation management services; and integrated supply chain and shipment insurance solutions. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.
Receive News & Ratings for Deutsche Post Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Deutsche Post and related companies with MarketBeat.com's FREE daily email newsletter.
