Critical Comparison: United Parcel Service (NYSE:UPS) versus Air T (NASDAQ:AIRTP)

Posted by MarketBeat News on Sep 2nd, 2023

Air T (NASDAQ:AIRTP – Get Free Report) and United Parcel Service (NYSE:UPS – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Valuation and Earnings

This table compares Air T and United Parcel Service’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air T	$267.89 million	N/A	N/A	N/A	N/A
United Parcel Service	$96.17 billion	1.49	$11.55 billion	$11.53	14.57

United Parcel Service has higher revenue and earnings than Air T.

Analyst Recommendations

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This is a breakdown of recent ratings and target prices for Air T and United Parcel Service, as provided by MarketBeat.com.

Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air T	0	0	0	0	N/A
United Parcel Service	3	11	7	1	2.27

United Parcel Service has a consensus price target of $189.54, suggesting a potential upside of 12.82%. Given United Parcel Service’s higher probable upside, analysts plainly believe United Parcel Service is more favorable than Air T.

Dividends

Air T pays an annual dividend of $2.00 per share and has a dividend yield of 9.0%. United Parcel Service pays an annual dividend of $6.48 per share and has a dividend yield of 3.9%. United Parcel Service pays out 56.2% of its earnings in the form of a dividend. United Parcel Service has raised its dividend for 14 consecutive years.

Insider & Institutional Ownership

58.5% of United Parcel Service shares are owned by institutional investors. 0.1% of United Parcel Service shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Air T and United Parcel Service’s net margins, return on equity and return on assets.

Net Margins	Return on Equity	Return on Assets
Air T	N/A	N/A	N/A
United Parcel Service	10.41%	51.28%	13.92%

Summary

United Parcel Service beats Air T on 10 of the 12 factors compared between the two stocks.

About Air T

(Get Free Report)

Air T, Inc., through its subsidiaries, provides overnight air cargo, ground equipment sale, and commercial jet engines and parts in the United States and internationally. The Overnight Air Cargo segment offers air express delivery services. As of March 31, 2023, this segment had 85 aircraft under the dry-lease agreements with FedEx. The Ground Equipment Sales segment manufactures, sells, and services aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles, and other specialized equipment. This segment sells its products to passenger and cargo airlines, ground handling companies, the United States Air Force, airports, and industrial customers. The Commercial Aircraft, Engines and Parts segment offers commercial aircraft trading, leasing, and parts solutions; commercial aircraft storage, storage maintenance, and aircraft disassembly/part-out services; commercial aircraft parts sales, exchanges, procurement services, consignment programs, and overhaul and repair services; and aircraft instrumentation, avionics, and a range of electrical accessories for civilian, military transport, regional/commuter and business/commercial jet, and turboprop aircraft. This segment also provides composite aircraft structures, and repair and support services. Air T, Inc. was incorporated in 1980 and is based in Denver, North Carolina.

About United Parcel Service

(Get Free Report)

United Parcel Service, Inc., a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services comprising guaranteed time-definite express options in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada, and Latin America. The company also provides international air and ocean freight forwarding, post-sales, and mail and consulting services. In addition, it offers truckload brokerage services; supply chain solutions to the healthcare and life sciences industries; financial and information services; and fulfillment and transportation management services. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.

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