United Parcel Service, Inc. UPS

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
73/100
Moderate

Ranked against 26 peers in Integrated Freight & Logistics

About United Parcel Service, Inc.

United Parcel Service, Inc., a package delivery and logistics provider, offers transportation and delivery services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery services for express letters, documents, packages and palletized freight through air and ground services. The International Package segment provides small package operations in Europe, the Middle … Full UPS analysis →

Key strengths

  • ROIC Sustainably Above Peers ROIC at 92.3th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Revenue Growth Consistent Revenue growth volatility is low (stability score 0.85), suggesting sticky customer base.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
77
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Where UPS ranks in Integrated Freight & Logistics

United Parcel Service, Inc. ranks #5 of 27 scored companies in Integrated Freight & Logistics by moat score — the top 19%. The widest moat in the group is ZTO Express (Cayman) Inc. (ZTO) at 83/100.

# Company Moat score Rating
1 ZTO Express (Cayman) Inc. ZTO 83/100 Strong
2 FedEx Corporation FDX 78/100 Strong
3 Expeditors International of Was EXPD 78/100 Strong
4 J.B. Hunt Transport Services, I JBHT 76/100 Strong
5 United Parcel Service, Inc. UPS 73/100 Moderate
6 Pitney Bowes Inc. PBI 71/100 Moderate
7 C.H. Robinson Worldwide, Inc. CHRW 68/100 Moderate
8 Globavend Holdings Limited - Or GVH 63/100 Moderate
9 Landstar System, Inc. LSTR 62/100 Moderate

See every General Corporate company ranked by moat score →

How UPS scores on the Corporate Default defenses

Pricing Power

Score 77 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 92 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 85 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 76 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 54 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 65 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding UPS's moat

What is United Parcel Service, Inc.'s moat score?

United Parcel Service, Inc. (UPS) scores 73 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #5 of 27 scored companies in Integrated Freight & Logistics, the top 19%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 26 companies in Integrated Freight & Logistics. Its strongest defense is Cost Advantage (92/100) and its weakest is Resilience (54/100).

How does United Parcel Service, Inc. compare with other Integrated Freight & Logistics companies?

United Parcel Service, Inc. ranks #5 of 27 scored companies in Integrated Freight & Logistics by moat score. The widest moat in Integrated Freight & Logistics is ZTO Express (Cayman) Inc. (ZTO) at 83/100. The companies ranked closest are J.B. Hunt Transport Services, I (JBHT) at 76 just above it and Pitney Bowes Inc. (PBI) at 71 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 26 companies in Integrated Freight & Logistics. The defenses are then weighted to produce the overall score out of 100.

Why is United Parcel Service, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for United Parcel Service, Inc.?

The Corporate Default template measures 6 defenses, and UPS scores: Pricing Power (77), Cost Advantage (92), Customer Stickiness (85), Capital Efficiency (76), Resilience (54), Scale & Market Position (65). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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