The huge global
infrastructures built by
UPS (NYSE:
UPS) and
FedEx (NYSE:
FDX)
are undoubtedly valuable and expensive to reproduce, but how much are
they really worth if the companies cannot drive compelling margins from
them? Although UPS has historically enjoyed better margins than FedEx,
and the acquisition of TNT should pay dividends in terms of volumes, UPS
is struggling to find that sweet spot of volume growth and margin
leverage.
Continue here:
http://stocks.investopedia.com/stock-analysis/2012/UPS-Another-Logistics-Player-Lacking-Leverage-UPS-FDX-AMZN-ODFL0501.aspx
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