FedEx's Market Cap Surpasses UPS for the First Time
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 14 2026
0mins
Source: NASDAQ.COM
- Market Cap Comparison: FedEx's market cap is approximately $83 billion, surpassing UPS for the first time, with UPS's market cap declining by 40% over the past five years while FedEx's has increased by 15%, indicating differing market perceptions of their values.
- Business Overhaul: UPS is undergoing a significant business overhaul aimed at becoming a smaller, more agile company by shedding low-profit customers and investing in new facilities, with expectations for improvement in the second half of 2026.
- Valuation Analysis: FedEx's price-to-sales ratio stands at 0.95x and its price-to-earnings ratio is nearly 20x, both above their five-year averages, while UPS's price-to-sales ratio is 0.97x and its price-to-earnings ratio is 15x, suggesting UPS may appeal to value investors due to its historical cheapness.
- Future Outlook: Despite UPS's transformation challenges, both FedEx and UPS are expected to benefit from ongoing e-commerce growth, particularly as FedEx has raised its fiscal 2026 guidance's lower end, indicating better-than-expected business performance.
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Analyst Views on UPS
Wall Street analysts forecast UPS stock price to rise
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 104.470
Low
80.00
Averages
107.06
High
126.00
Current: 104.470
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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- Cost Improvement: The significant drop in diesel prices typically enhances operating margins for LTL trucking, while rail, which also uses large volumes of diesel, experiences a similar but slightly smaller benefit, alleviating operational pressures in a cost-sensitive environment.
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- Positive Market Reaction: FedEx has already climbed 38% year-to-date, indicating strong investor confidence in the company's transformation under CEO Raj Subramaniam, particularly with the upcoming freight division separation on June 1.
- Analysts' Favorable Outlook: Wells Fargo views the FedEx Freight split as a compelling 'self-help' story in an improving trucking market, emphasizing pricing power and cost reductions, while Citi highlighted cost savings and improved profitability.
- Long-Term Growth Potential: FedEx is projected to generate over $93 billion in revenue for the fiscal year ending in May, with Jim noting a $7 billion addressable market opportunity in AI infrastructure-related transportation services, showcasing its long-term growth potential in e-commerce and data centers.
See More
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- Delay Complex Rules: The companies advocate for deferring the implementation of more complex tax regulations until they are legally clear and operationally viable, thereby avoiding unnecessary disruptions to their operations.
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See More
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