Critical Survey: FedEx (NYSE:FDX) and DSV A/S (OTCMKTS:DSDVF)

DSV A/S (OTCMKTS:DSDVF) and FedEx (NYSE:FDX) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

31.5% of DSV A/S shares are held by institutional investors. Comparatively, 84.5% of FedEx shares are held by institutional investors. 0.5% of FedEx shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for DSV A/S and FedEx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DSV A/S	0	0	0	0	0.00
FedEx	2	10	17	1	2.57

FedEx has a consensus target price of $350.54, indicating a potential upside of 4.78%. Given FedEx’s stronger consensus rating and higher probable upside, analysts clearly believe FedEx is more favorable than DSV A/S.

Valuation & Earnings

This table compares DSV A/S and FedEx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DSV A/S	N/A	N/A	N/A	$8.38	26.12
FedEx	$94.72 billion	0.84	$4.43 billion	$18.51	18.07

FedEx has higher revenue and earnings than DSV A/S. FedEx is trading at a lower price-to-earnings ratio than DSV A/S, indicating that it is currently the more affordable of the two stocks.

Dividends

DSV A/S pays an annual dividend of $1.50 per share and has a dividend yield of 0.7%. FedEx pays an annual dividend of $4.88 per share and has a dividend yield of 1.5%. DSV A/S pays out 17.9% of its earnings in the form of a dividend. FedEx pays out 26.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FedEx has raised its dividend for 1 consecutive years. FedEx is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares DSV A/S and FedEx’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DSV A/S	N/A	N/A	N/A
FedEx	4.68%	16.49%	5.21%

Summary

FedEx beats DSV A/S on 13 of the 15 factors compared between the two stocks.

About DSV A/S

DSV A/S offers transport and logistics services in Europe, the Middle East, Africa, North America, South America, Asia, Australia, and the Pacific. It operates through three segments: Air & Sea, Road, and Solutions. The company provides air freight, air freight compliance and carrier, and rail freight services; sea freight, and sea freight compliance and carrier services, as well as freight containers. It also offers road freight services, such as part and full loads, groupage, specialized transport, express, and online and document handling services; and workshops. In addition, the company provides logistics solutions for automotive, technology, healthcare, energy, industrial, retail/ fashion, and chemical sectors; and inventory management solutions. Further, it offers special project transport services, such as industrial projects, renewable energy, government logistics, ship charter, and air charter services; and courier and warehousing services. The company was formerly known as DSV Panalpina A/S and changed its name to DSV A/S in September 2021. DSV A/S was incorporated in 1976 and is based in Hedehusene, Denmark.

About FedEx

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services. The FedEx Ground segment provides small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight transportation services. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. In addition, the company offers supply chain management solutions; and air and ocean cargo transportation, specialty transportation, customs brokerage, and trade management tools and data. The company was founded in 1971 and is headquartered in Memphis, Tennessee.