ZTO Express (Cayman) (ZTO) versus The Competition Head-To-Head Contrast

ZTO Express (Cayman) (NYSE:ZTO) is one of 60 publicly-traded companies in the “Air Freight & Logistics” industry, but how does it compare to its peers? We will compare ZTO Express (Cayman) to similar businesses based on the strength of its profitability, valuation, earnings, risk, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares ZTO Express (Cayman) and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZTO Express (Cayman)	19.03%	15.90%	10.89%
ZTO Express (Cayman) Competitors	-1,705.82%	-21.27%	-13.50%

Dividends

ZTO Express (Cayman) pays an annual dividend of $0.76 per share and has a dividend yield of 3.7%. ZTO Express (Cayman) pays out 40.9% of its earnings in the form of a dividend. As a group, “Air Freight & Logistics” companies pay a dividend yield of 2.5% and pay out 41.2% of their earnings in the form of a dividend. ZTO Express (Cayman) is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings for ZTO Express (Cayman) and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZTO Express (Cayman)	0	4	1	1	2.50
ZTO Express (Cayman) Competitors	664	2035	2610	108	2.40

ZTO Express (Cayman) currently has a consensus target price of $24.70, indicating a potential upside of 21.64%. As a group, “Air Freight & Logistics” companies have a potential upside of 14.84%. Given ZTO Express (Cayman)’s stronger consensus rating and higher probable upside, research analysts clearly believe ZTO Express (Cayman) is more favorable than its peers.

Earnings & Valuation

This table compares ZTO Express (Cayman) and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
ZTO Express (Cayman)	$54.21 billion	$1.30 billion	10.92
ZTO Express (Cayman) Competitors	$11.22 billion	$485.71 million	9.55

ZTO Express (Cayman) has higher revenue and earnings than its peers. ZTO Express (Cayman) is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

ZTO Express (Cayman) has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500. Comparatively, ZTO Express (Cayman)’s peers have a beta of 0.70, suggesting that their average share price is 30% less volatile than the S&P 500.

Insider and Institutional Ownership

41.7% of ZTO Express (Cayman) shares are owned by institutional investors. Comparatively, 43.5% of shares of all “Air Freight & Logistics” companies are owned by institutional investors. 41.3% of ZTO Express (Cayman) shares are owned by company insiders. Comparatively, 19.9% of shares of all “Air Freight & Logistics” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

ZTO Express (Cayman) beats its peers on 12 of the 15 factors compared.

About ZTO Express (Cayman)

ZTO Express (Cayman) Inc. is a China-based express delivery and logistics company. It provides parcel collection, sorting, transportation and delivery services, serving e-commerce businesses, merchants and individual customers. The company operates a network of service outlets, transportation partners and sorting hubs across China. Its services also include freight forwarding, warehousing and cross-border logistics through its international business. Founded in 2002, ZTO is headquartered in Shanghai.