WallStSmart

United Parcel Service Inc (UPS)vsZTO Express (Cayman) Inc (ZTO)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

United Parcel Service Inc generates 69% more annual revenue ($91.37B vs $54.21B). ZTO leads profitability with a 19.0% profit margin vs 4.8%. ZTO appears more attractively valued with a PEG of 1.05. ZTO earns a higher WallStSmart Score of 80/100 (B+).

UPS

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 6.5Value: 6.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.20

ZTO

Strong Buy

80

out of 100

Grade: B+

Growth: 8.7Profit: 7.5Value: 8.7Quality: 7.5
Piotroski: 5/9Altman Z: 3.42
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

UPSUndervalued (+16.8%)

Margin of Safety

+16.8%

Fair Value

$144.21

Current Price

$108.30

$35.91 discount

UndervaluedFair: $144.21Overvalued
ZTOUndervalued (+65.5%)

Margin of Safety

+65.5%

Fair Value

$72.26

Current Price

$20.80

$51.46 discount

UndervaluedFair: $72.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

UPS3 strengths · Avg: 8.7/10
Market CapQuality
$92.10B9/10

Large-cap with strong market position

Return on EquityProfitability
29.5%9/10

Every $100 of equity generates 29 in profit

Free Cash FlowQuality
$2.41B8/10

Generating 2.4B in free cash flow

ZTO6 strengths · Avg: 9.0/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
58.1%10/10

Earnings expanding 58.1% YoY

Altman Z-ScoreHealth
3.4210/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Areas to Watch

UPS4 concerns · Avg: 3.0/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Profit MarginProfitability
4.8%3/10

4.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-11.6%2/10

Earnings declined 11.6%

ZTO0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : UPS

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

Bull Case : ZTO

The strongest argument for ZTO centers on P/E Ratio, EPS Growth, Altman Z-Score. Profitability is solid with margins at 19.0% and operating margin at 22.2%. Revenue growth of 23.0% demonstrates continued momentum.

Bear Case : UPS

The primary concerns for UPS are PEG Ratio, Profit Margin, Piotroski F-Score. Debt-to-equity of 2.02 is elevated, increasing financial risk. Thin 4.8% margins leave little buffer for downturns.

Bear Case : ZTO

No major red flags identified for ZTO, but monitor valuation.

Key Dynamics to Monitor

UPS profiles as a value stock while ZTO is a growth play — different risk/reward profiles.

UPS carries more volatility with a beta of 1.05 — expect wider price swings.

ZTO is growing revenue faster at 23.0% — sustainability is the question.

UPS generates stronger free cash flow (2.4B), providing more financial flexibility.

Bottom Line

ZTO scores higher overall (80/100 vs 51/100), backed by strong 19.0% margins and 23.0% revenue growth. UPS offers better value entry with a 16.8% margin of safety. Both earn "Strong 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.

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 →

ZTO Express (Cayman) Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · China

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

Visit Website →

Want to dig deeper into these stocks?