Tuesday, May 1, 2012

Investopedia: UPS Another Logistics Player Lacking Leverage

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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