Coke vs. Pepsi, Advil vs Tylenol, Apple vs Samsung, there are many fierce competitors out there. Federal Express (FDX) and United Parcel Service (UPS) are just another pair in the shipping business, right? Not quite. While these two companies are certainly the two most prominent institutions in their industry, they also hold a more significant importance for the overall US economy. Investors should hope that instead of one company trumping another in earnigns, they will both grow together.
Because of their integral role in moving goods throughout the country, the two companies often can serve as leading indicators of economic health. If demand for shipments is going up, you can be more confident that hiring and spending are due to pick up as well.
Here we compare the two company's stock performance with the Standard & Poor's 500 index, which is often used as a bellwether for the U.S. economy.
Both provide an important service, but which one provides it better? To answer this we turn to an infographic comissioned by PackageFox comparing the respective strengths and weaknesses of UPS and FedEx. In a way, each complements each other with UPS having a much more expansive ground fleet while FedEx is the clear leader in the air. Additionally, although UPS generates more revenue, FedEx Air was the most reliable and FedEx Ground provided the most value of the services studied.
See the inforgraphic below for more information on each company and their competitors.
Written by Dan Connelly