FedEx Surpasses UPS as Largest U.S. Parcel Firm: Which Stock is the Smarter Buy in 2026?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 14 2026
0mins
Source: Yahoo Finance
- Market Share Shift: FedEx's market cap stands at approximately $83 billion, surpassing UPS, which has seen a 40% decline in market cap over the past five years, indicating a waning market confidence in UPS that could affect its future financing capabilities.
- Business Restructuring Progress: UPS is undergoing a significant business overhaul, aiming for a turnaround in the second half of 2026; despite a decline in total revenues, revenue per piece has risen, demonstrating the effectiveness of its strategy to focus on profitable customers.
- Valuation Comparison: FedEx's price-to-sales ratio is 0.95x and its price-to-earnings ratio is nearly 20x, while UPS's price-to-sales ratio is 0.97x and its price-to-earnings ratio is 15x, indicating that UPS appears historically cheaper, which may attract value investors.
- Growth Potential Assessment: Although UPS's valuation is lower, FedEx shows greater growth potential, having just raised its fiscal 2026 guidance's lower end, suggesting that its business performance is exceeding expectations, making it a suitable choice for growth-oriented investors.
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Analyst Views on UPS
Wall Street analysts forecast UPS stock price to fall
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 107.700
Low
80.00
Averages
107.06
High
126.00
Current: 107.700
Low
80.00
Averages
107.06
High
126.00
About UPS
United Parcel Service, Inc. is a global package delivery and logistics provider. Its U.S. Domestic Package segment offers a full spectrum of air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day and three-day delivery alternatives as well as air cargo services. Its ground network enables customers to ship using its day-definite ground service. Ground Saver provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Middle East and Africa, Canada and Latin America and Asia. It offers a selection of guaranteed day and time-definite international transportation services supported by its brokerage capabilities that facilitate cross-border clearance for international shipments. Its supply chain solutions consist of customized third-party logistics and specialized cold chain transportation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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