GXO Logistics vs United Parcel Service
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KIRA’s take AI analyst
I put GXO Logistics and United Parcel Service side by side, using each one’s latest annual report. Here is what stands out:
- United Parcel Service is the larger business, with $88.7B of revenue in fiscal 2025 against $13.2B for GXO Logistics, about 6.7 times as much.
- GXO Logistics grew revenue faster (12.6%, against −2.7%).
- United Parcel Service kept more of each dollar of sales as operating profit (8.9% operating margin, against 1.9%).
- United Parcel Service turned more of its sales into free cash flow (5.4% FCF margin, against 0.8%).
- United Parcel Service earned a higher return on the capital invested in it (18.4%, against 2.3%).
- Investors pay more for each dollar of GXO Logistics’s earnings: a P/E of 43.6x against 18.6x for United Parcel Service.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
GXO Logistics
GXO
3/10
Revenue growth5-year growthShare count change
United Parcel Service
UPS
6/10
Operating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | GXO FY25 | UPS FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.7B | $85.4B |
| Revenue | $13.2B | $88.7B |
| Free cash flow | $110M | $4.8B |
| Net income | $32.0M | $5.6B |
| Growth | ||
| Revenue growth | 12.6% | −2.7% |
| 5-year growth | 16.3% | 0.9% |
| Share count change | −2.9% | −0.7% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 1.9% | 8.9% |
| Net margin | 0.2% | 6.3% |
| FCF margin | 0.8% | 5.4% |
| Return on capital | 2.3% | 18.4% |
| Return on equity | 1.1% | 33.8% |
| Balance sheet | ||
| Net debt | $2.2B | $18.5B |
| Net debt / EBITDA | 3.2x | 1.7x |
| Dividends and buybacks | $200M | $6.4B |
| Valuation & quality | ||
| P/E | 43.6x | 18.6x |
| Piotroski F-score | 5 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.