WallStSmart

GXO Logistics Inc (GXO)vsUnited Parcel Service Inc (UPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Parcel Service Inc generates 566% more annual revenue ($89.93B vs $13.50B). UPS leads profitability with a 5.1% profit margin vs 1.0%. GXO appears more attractively valued with a PEG of 1.36. GXO earns a higher WallStSmart Score of 53/100 (C-).

GXO

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 4.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.36

UPS

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 6.0Value: 6.0Quality: 5.0
Piotroski: 3/9Altman Z: 2.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for GXO.

UPSUndervalued (+16.8%)

Margin of Safety

+16.8%

Fair Value

$144.29

Current Price

$104.50

$39.79 discount

UndervaluedFair: $144.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GXO1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

UPS3 strengths · Avg: 9.0/10
Return on EquityProfitability
33.3%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$88.88B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.19B8/10

Generating 1.2B in free cash flow

Areas to Watch

GXO4 concerns · Avg: 2.8/10
Return on EquityProfitability
4.5%3/10

ROE of 4.5% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

P/E RatioValuation
44.8x2/10

Premium valuation, high expectations priced in

UPS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.634/10

Expensive relative to growth rate

Profit MarginProfitability
5.1%3/10

5.1% margin — thin

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

Debt/EquityHealth
1.823/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : GXO

The strongest argument for GXO centers on Price/Book. Revenue growth of 10.8% demonstrates continued momentum. PEG of 1.36 suggests the stock is reasonably priced for its growth.

Bull Case : UPS

The strongest argument for UPS centers on Return on Equity, Market Cap, Free Cash Flow.

Bear Case : GXO

The primary concerns for GXO are Return on Equity, Profit Margin, Operating Margin. A P/E of 44.8x leaves little room for execution misses. Debt-to-equity of 2.01 is elevated, increasing financial risk.

Bear Case : UPS

The primary concerns for UPS are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.82 is elevated, increasing financial risk.

Key Dynamics to Monitor

GXO carries more volatility with a beta of 1.61 — expect wider price swings.

GXO is growing revenue faster at 10.8% — sustainability is the question.

UPS generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor INTEGRATED FREIGHT & LOGISTICS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GXO scores higher overall (53/100 vs 52/100) and 10.8% revenue growth. UPS offers better value entry with a 16.8% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

GXO Logistics Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

GXO Logistics Inc (GXO) is a leading provider of contract logistics services, specializing in supply chain management and tailored logistics solutions for the e-commerce, retail, and consumer goods sectors. The company capitalizes on its extensive global network and innovative technology to drive operational efficiency and responsiveness for its clients, while also committing to sustainable practices. With rising demand for sophisticated warehousing and fulfillment services, GXO is well-positioned to capitalize on evolving market dynamics, supported by a seasoned management team and strategic partnerships aimed at promoting sustainable growth and enhancing shareholder value.

United Parcel Service Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

United Parcel Service is an American multinational shipping & receiving and supply chain management company founded in 1907.

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