WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Parcel Service Inc generates 570% more annual revenue ($88.32B vs $13.18B). UPS leads profitability with a 5.9% profit margin vs 0.2%. GXO appears more attractively valued with a PEG of 1.56. UPS earns a higher WallStSmart Score of 47/100 (D+).

GXO

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 4.0Value: 5.3Quality: 3.3
Piotroski: 1/9Altman Z: 1.49

UPS

Hold

47

out of 100

Grade: D+

Growth: 2.0Profit: 6.5Value: 7.3Quality: 5.0
Piotroski: 3/9Altman Z: 2.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GXOUndervalued (+77.4%)

Margin of Safety

+77.4%

Fair Value

$280.63

Current Price

$56.22

$224.41 discount

UndervaluedFair: $280.63Overvalued
UPSUndervalued (+35.8%)

Margin of Safety

+35.8%

Fair Value

$187.03

Current Price

$107.57

$79.46 discount

UndervaluedFair: $187.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GXO1 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

UPS4 strengths · Avg: 8.8/10
Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$91.40B9/10

Large-cap with strong market position

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.19B8/10

Generating 1.2B in free cash flow

Areas to Watch

GXO4 concerns · Avg: 3.3/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Return on EquityProfitability
1.2%3/10

ROE of 1.2% — below average capital efficiency

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

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

Expensive relative to growth rate

Profit MarginProfitability
5.9%3/10

5.9% margin — thin

Debt/EquityHealth
1.993/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : GXO

The strongest argument for GXO centers on Price/Book.

Bull Case : UPS

The strongest argument for UPS centers on Return on Equity, Market Cap, P/E Ratio.

Bear Case : GXO

The primary concerns for GXO are PEG Ratio, Return on Equity, Profit Margin. A P/E of 200.8x leaves little room for execution misses. Thin 0.2% margins leave little buffer for downturns.

Bear Case : UPS

The primary concerns for UPS are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 1.99 is elevated, increasing financial risk.

Key Dynamics to Monitor

GXO carries more volatility with a beta of 1.68 — expect wider price swings.

GXO is growing revenue faster at 7.9% — 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 (47/100 vs 47/100). UPS offers better value entry with a 35.8% margin of safety. Both earn "Hold" and "Hold" 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) stands as a premier provider of contract logistics services, offering comprehensive supply chain management and logistics solutions tailored to various industries, including e-commerce, retail, and consumer goods. Leveraging an expansive global network and cutting-edge technologies, GXO enhances operational efficiency and scalability for clients, all while prioritizing sustainability in its practices. With a growing demand for advanced warehousing and fulfillment solutions, the company is strategically positioned to navigate market complexities, driven by a seasoned management team and robust partnerships that foster consistent long-term growth and 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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