What important qualitative decisions, not financial, would ups and fed ex have when looking to invest?

Question

im stuck on which i should invest in. ive already looked at finances but im lookin for other decisions the company makes and how that would affect their company.

Answer 1

Good for you that you're looking past the recent financials in determining whether or not to invest. Here are a few considerations:

Factors affecting both UPS and FedEx:

- The worldwide economy. Both UPS and FedEx are economically sensitive. If worldwide economic growth continues to slow, it's bad news for both comnpanies.

- The price of gasoline. Clearly, both of these companies are hurt if gas prices hkeep going up.

- The consumer. Both companies benefit by mail catalog ordering, eBay buying and the like - if the consumer has no $ to spend, business declines.

Factors that probably affect one company more than the other:

- which of the two companies has greater geographic expansion opportunity?

- which of the two companies is more leveraged to corporations, and which is more leveraged to consumers? It's possible that in an economic recovery, corporations are going to grow their volumes more quickly than consumers.

- which of the two companies have more fuel-efficient fleets? Is there a "cost per package" metric that you can track?

Hope these help -