Head-To-Head Survey: FedEx (NYSE:FDX) vs. Deutsche Post (OTCMKTS:DPSGY)

FedEx (NYSE:FDX) and Deutsche Post (OTCMKTS:DPSGY) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for FedEx and Deutsche Post, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FedEx	2	10	17	1	2.57
Deutsche Post	0	0	0	0	0.00

FedEx presently has a consensus target price of $350.54, suggesting a potential upside of 8.83%. Given FedEx’s stronger consensus rating and higher possible upside, equities analysts clearly believe FedEx is more favorable than Deutsche Post.

Earnings & Valuation

This table compares FedEx and Deutsche Post”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FedEx	$94.72 billion	0.80	$4.43 billion	$18.51	17.40
Deutsche Post	$99.52 billion	0.61	$5.65 billion	$4.20	11.75

Deutsche Post has higher revenue and earnings than FedEx. Deutsche Post is trading at a lower price-to-earnings ratio than FedEx, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

84.5% of FedEx shares are owned by institutional investors. 0.7% of FedEx shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

FedEx pays an annual dividend of $4.88 per share and has a dividend yield of 1.5%. Deutsche Post pays an annual dividend of $1.44 per share and has a dividend yield of 2.9%. FedEx pays out 26.4% of its earnings in the form of a dividend. Deutsche Post pays out 34.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FedEx has raised its dividend for 1 consecutive years.

Profitability

This table compares FedEx and Deutsche Post’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FedEx	4.68%	16.49%	5.21%
Deutsche Post	5.32%	20.75%	7.21%

Risk & Volatility

FedEx has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Deutsche Post has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Summary

FedEx beats Deutsche Post on 11 of the 18 factors compared between the two stocks.

About FedEx

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services. The FedEx Ground segment provides small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight transportation services. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. In addition, the company offers supply chain management solutions; and air and ocean cargo transportation, specialty transportation, customs brokerage, and trade management tools and data. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

About Deutsche Post

Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.