Head-To-Head Contrast: United Parcel Service (NYSE:UPS) & Freightos (NASDAQ:CRGO)

United Parcel Service (NYSE:UPS) and Freightos (NASDAQ:CRGO) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Volatility & Risk

United Parcel Service has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Freightos has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares United Parcel Service and Freightos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Parcel Service	4.84%	37.78%	8.13%
Freightos	-56.24%	-41.63%	-27.70%

Analyst Recommendations

This is a summary of current ratings and recommmendations for United Parcel Service and Freightos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Parcel Service	2	11	11	1	2.44
Freightos	1	0	2	0	2.33

United Parcel Service currently has a consensus target price of $118.45, indicating a potential upside of 9.29%. Freightos has a consensus target price of $2.75, indicating a potential upside of 314.16%. Given Freightos’ higher possible upside, analysts clearly believe Freightos is more favorable than United Parcel Service.

Valuation and Earnings

This table compares United Parcel Service and Freightos”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Parcel Service	$88.66 billion	1.04	$5.57 billion	$5.20	20.84
Freightos	$29.92 million	1.17	-$17.52 million	($0.33)	-2.01

United Parcel Service has higher revenue and earnings than Freightos. Freightos is trading at a lower price-to-earnings ratio than United Parcel Service, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

60.3% of United Parcel Service shares are owned by institutional investors. Comparatively, 22.7% of Freightos shares are owned by institutional investors. 0.2% of United Parcel Service shares are owned by insiders. Comparatively, 19.6% of Freightos shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

United Parcel Service beats Freightos on 12 of the 15 factors compared between the two stocks.

About United Parcel Service

United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services comprising guaranteed time-definite express options in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The company also offers international air and ocean freight forwarding, post-sales, and mail and consulting services. In addition, it provides truckload and customs brokerage services; supply chain solutions to the healthcare and life sciences industries; fulfillment and transportation management services; and integrated supply chain and shipment insurance solutions. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.

About Freightos

Freightos Limited, together with its subsidiaries, operates a vendor-neutral booking and payment platform for international freight. It operates WebCargo, a platform for connecting carriers and forwarders; and Freightos.com, a platform for connecting service providers to importers/exporters. The company also offers software-as-a-service solutions, such as WebCargo Air for airline rates and ebookings; WebCargo AcceleRate, a multi-modal rate repository; data services; and WebCargo Airline Control Panel that enables airlines to control bookings and optimize pricing with real-time booking analytics. In addition, it provides digital customs brokerage services. The company is based in Jerusalem, Israel.