EV120

Curious as to why it is thought that USPS stopping Sat delivery will affect the the contract. I thought USPS will still have Sat Express and Priority delivery.

Tigerpilot1995

It is still a reduction in Saturday service.

Shaggy1970

Every year Fred and UPS both raise their prices by 4-7% and they ask why the overnight business is dropping off. It seems that people don't get the concept that customers, me included, will not pay 40 dollars to ship a 20 dollar product overnight.

4A2B

FDX and UPS do not care about packages that do not make the right yield. It is only about the yield, period. They will price for the yield and shrink if necessary to meet demand and we see that going on left and right on both sides of the duopoly. We better realize, at both places, this is the case as neither place is going to place a package on an aircraft unless it is the only option to meet service and it is at the right profit margin. New world folks, get used to it.

Tigerpilot1995

Any FedEx guys hearing when the USPS award is happening? Longer this goes the better it appears for you guys.

USMCFDX

No, the longer it takes, the more it shows how screwed up our government is.

Sideshow Bob

Very, very true...especially at UPS which is run by a bean counter extraordinaire. At least Fred has some emotional "skin in the game" when it comes to his company. At least he wants to grow FDX profit through organic growth, while Davis is just using UPS as a vehicle to in effect short the company and leave the carcass at the side of the road, and then move onto the next vehicle. Other than his logistics baby Supply Chain Solutions, he had bungled every deal he's tried, and postal will likely add to the list. Until he's gone the last 767 we get this year will be the last airframe here for years...yet the dividend will continue to remain strong, as a result of stock buy backs and borrowing. UPS is now far more leveraged than FDX under Davis.

L'il J.Seinfeld

You spew more hate and disinformation and inaccurate information than anyone I know. Remember that guy who worked for Saddam? Baghdad Bob? That's you. You know just enough of the buzzwords to sound like you know what you're talking about, but you haven't a clue. I used to enjoy seeing your Davis Doctrine theory develop, but now it's just plain sickening because it's fear mongering.

We aren't growing because there isn't a need to grow. No conspiracy against you, Baghdad Bob, or the pilots in the IPA.

Sideshow Bob

Fear mongering...what are you scared of...reality?

OK...take a Zanex, have a brandy and do a little research. For starters from some industry analysts:

"Of course, the fundamentals of the stocks are important too, While UPS has a larger market capitalization, it also looks a little overpriced. FedEx trades at about 11 times forward earnings and has a price to earnings growth (PEG) ratio of 1.1. Meanwhile, UPS has a forward P/E of 14 and PEG ratio of nearly 1.6.

FedEx is also leading the way in terms of performance for now with a one-year return of about 8.5%, beating out UPS’s 6% gain.

Of course, that doesn’t factor in payouts to investors, in which UPS makes up lost ground. The company has an attractive current dividend yield of 3.3% and has increased its dividend every year since 2002.

FDX, on the other hand, pays a nominal dividend with a current yield of 0.7%. Still, it has raised its dividend nine times since it began paying a dividend a decade ago and hopes to do so again with savings from the cost-cutting program.

Last, I like to compare the companies balance sheets. If a company is too highly leveraged it can run into problems. UPS has a debt-to-equity ratio of 1.42, versus FedEx ratio comes in at just 0.078. FedEx has much less leverage than UPS. There is no question this category goes to FedEx."

Need a blankie and Hello Kitty Lil' Jerry?

Or should we call you Norman Black?

JustUnderPar

Something with pictures:

Comparing FedEx With United Parcel Service - Seeking Alpha