Buy FDX or UPS is a nobrainer! FDX has a $50.85 book value with $2.24 billion in debt and $3.37 billion in cash/ and UPS has a $4.88 book value and $12.92 billion in debt. Why would anyone in their right mind buy UPS over FDX even if you think UPS is a little better company the valuations are so compelling that FDX is the clear clear winner! If anything I think I am going to buy FDX and short some UPS against sounds like a great pairs trade. I am definitely going to look into that some more this weekend.
Your entitled to your opinion, but I think UPS is the better buy. They are outfitting their vehicles to run on natural gas, plus, they treat their employees right. The Teamsters just renewed a 5 yr contract and that oughta be long enough to realize some better profits before its up for renewal/sell.
FedEx works great here - UPS is twice the price and their customer support is garbage. UPS just lost another parcel here and they are a fr^()cking joke. On the other hand since FedEx has fully absorbed Roadway/ yellow systems their service has improved tremendously and we get a customer discount as well - it's FedEx all the way at least in this area.
Sentiment: Strong Sell
UPS provides excellent wages and superior benefits for all its employee. Meanwhile, the fastest growing segment of FDX, residential ground, is operated under a highly dubious independent contractor (anything but in reality) network that puts all those employees at personal risk. Clearly, FDX's primary concern is to make as much money in that segment as possible at the expense of those providing the service. I simply don't believe UPS gets enough credit for its superior recognition of all employees.
Some of us old timers that have owned UPS and stood by her since the $40+ range...we really do not give a darn about share price. We only care about the awesome dividends. I wish it would go down to the 40's again so I could buy a ton more!
Sentiment: Strong Buy