WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Parcel Service Inc generates 573% more annual revenue ($88.66B vs $13.18B). GXO leads profitability with a 24.0% profit margin vs 6.3%. GXO appears more attractively valued with a PEG of 1.47. UPS earns a higher WallStSmart Score of 56/100 (C).

GXO

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 6.5Value: 4.7Quality: 3.3
Piotroski: 1/9Altman Z: 1.49

UPS

Buy

56

out of 100

Grade: C

Growth: 2.7Profit: 6.5Value: 7.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GXOSignificantly Overvalued (-3234.2%)

Margin of Safety

-3234.2%

Fair Value

$1.90

Current Price

$49.93

$48.03 premium

UndervaluedFair: $1.90Overvalued
UPSSignificantly Overvalued (-29.2%)

Margin of Safety

-29.2%

Fair Value

$92.89

Current Price

$95.86

$2.97 premium

UndervaluedFair: $92.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GXO3 strengths · Avg: 9.0/10
Return on EquityProfitability
119.0%10/10

Every $100 of equity generates 119 in profit

Profit MarginProfitability
24.0%9/10

Keeps 24 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

UPS4 strengths · Avg: 8.8/10
Return on EquityProfitability
33.8%10/10

Every $100 of equity generates 34 in profit

Market CapQuality
$82.70B9/10

Large-cap with strong market position

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.59B8/10

Generating 2.6B in free cash flow

Areas to Watch

GXO4 concerns · Avg: 2.5/10
Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

P/E RatioValuation
191.8x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-55.5%2/10

Earnings declined 55.5%

UPS4 concerns · Avg: 3.3/10
EPS GrowthGrowth
4.6%4/10

4.6% earnings growth

Profit MarginProfitability
6.3%3/10

6.3% 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 Return on Equity, Profit Margin, Price/Book. Profitability is solid with margins at 24.0% and operating margin at 4.0%. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bull Case : UPS

The strongest argument for UPS centers on Return on Equity, Market Cap, P/E Ratio. PEG of 1.49 suggests the stock is reasonably priced for its growth.

Bear Case : GXO

The primary concerns for GXO are Operating Margin, Piotroski F-Score, P/E Ratio. A P/E of 191.8x leaves little room for execution misses.

Bear Case : UPS

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

Key Dynamics to Monitor

GXO profiles as a mature stock while UPS is a value play — different risk/reward profiles.

GXO carries more volatility with a beta of 1.70 — expect wider price swings.

GXO is growing revenue faster at 7.9% — sustainability is the question.

UPS generates stronger free cash flow (2.6B), providing more financial flexibility.

Bottom Line

UPS scores higher overall (56/100 vs 49/100). Both earn "Buy" 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) is a leading provider of contract logistics services, specializing in supply chain management and end-to-end logistics for diverse sectors such as e-commerce, retail, and consumer goods. The company utilizes an extensive global network and innovative technologies to improve operational efficiency and scalability for its clients, while also committing to sustainability practices. As demand for warehousing and fulfillment services continues to rise, GXO is well-positioned to adapt to market complexities, supported by a highly experienced management team and strategic client collaborations that drive 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.

Visit Website →

Want to dig deeper into these stocks?