Deutsche Post (DPSGY) & Its Rivals Critical Review

Profitability

This table compares Deutsche Post and its peers’ 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%
Deutsche Post Competitors	-461.09%	-1.84%	-8.34%

Institutional and Insider Ownership

42.7% of shares of all “Air Freight & Logistics” companies are held by institutional investors. 18.3% of shares of all “Air Freight & Logistics” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Deutsche Post has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Deutsche Post’s peers have a beta of 0.89, indicating that their average share price is 11% less volatile than the S&P 500.

Dividends

Deutsche Post pays an annual dividend of $1.44 per share and has a dividend yield of 2.9%. Deutsche Post pays out 34.3% of its earnings in the form of a dividend. As a group, “Air Freight & Logistics” companies pay a dividend yield of 2.6% and pay out 49.4% of their earnings in the form of a dividend. Deutsche Post is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Deutsche Post and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Deutsche Post	$99.52 billion	$5.65 billion	11.75
Deutsche Post Competitors	$12.21 billion	$608.26 million	14.27

Deutsche Post has higher revenue and earnings than its peers. Deutsche Post is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Deutsche Post beats its peers on 8 of the 11 factors compared.

Deutsche Post Company Profile

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.