Investors are closely evaluating the performance of two transportation companies, ZTO Express (Cayman) and Freight Technologies, as they assess which firm presents a more attractive investment opportunity. A detailed comparison reveals significant differences in earnings strength, profitability, valuation, and institutional ownership, indicating that ZTO Express may hold the edge over Freight Technologies.
Analyst Recommendations Favor ZTO Express
Current ratings from analysts indicate a clear preference for ZTO Express (Cayman). As reported by MarketBeat, the company has received a consensus price target of $22.36, suggesting an upside potential of 18.65%. In contrast, Freight Technologies has not garnered any buy ratings, leading to a significantly lower rating score of 1.00. This disparity reflects analysts’ belief that ZTO Express represents a more favorable investment than its competitor.
Profitability and Earnings Analysis
When examining profitability metrics, ZTO Express (Cayman) demonstrates impressive financial health. The company reports a net margin of 18.83%, a return on equity of 14.44%, and a return on assets of 9.72%. In stark contrast, Freight Technologies has not disclosed comparable figures, indicating a lack of profitability, as the company reported a net loss of $5.60 million.
The revenue comparison further highlights the difference in financial performance. ZTO Express generated gross revenue of $6.07 billion, with an earnings per share of $1.48 and a price-to-earnings ratio of 12.73. Meanwhile, Freight Technologies reported revenue of just $13.73 million with a negative earnings per share of ($2.90). This stark contrast indicates that ZTO Express is not only larger in terms of revenue but also more profitable.
Volatility and Risk Assessment
Evaluating the risk associated with these stocks reveals a significant difference in volatility. ZTO Express (Cayman) has a beta of -0.2, suggesting that its share price is 120% less volatile than the S&P 500. On the other hand, Freight Technologies has a beta of 1.24, indicating that its shares are 24% more volatile than the S&P 500. This information is crucial for investors considering the stability of their investments.
Institutional Ownership Insights
Institutional investment in ZTO Express (Cayman) is notably strong, with 41.7% of shares held by institutional investors. This level of ownership suggests confidence from large money managers and hedge funds regarding the company’s long-term growth potential. In comparison, Freight Technologies has only 6.2% of its shares held by institutional investors, along with 9.0% of shares held by insiders. This indicates a lower level of institutional confidence in Freight Technologies.
In summary, ZTO Express (Cayman) outperforms Freight Technologies across multiple key metrics, including profitability, revenue generation, and institutional support. Out of the 15 factors analyzed, ZTO Express exceeds Freight Technologies in 14, demonstrating a clear advantage for potential investors.
Company Profiles
ZTO Express (Cayman), founded in 2002 and headquartered in Shanghai, provides express delivery and logistics services throughout the People’s Republic of China. Its operations include freight forwarding and delivery services tailored for e-commerce and traditional merchants.
On the other hand, Freight Technologies, established in 2015 and based in The Woodlands, Texas, operates a transportation logistics technology platform focused on cross-border shipping between the United States and Mexico. Its Fr8App technology platform offers various services, including freight brokerage support and transport management solutions.
As investors weigh their options, the data clearly favors ZTO Express (Cayman) as a more robust investment opportunity compared to Freight Technologies.
