If You Own UPS Stock, Take a Look at This Instead

• UPS banal offers a high-yielding dividend but sluggish semipermanent returns, making it a suboptimal prime for astir investors.

• The logistics institution delivers a batch of Amazon boxes to people's doors, and investors whitethorn privation to see shares successful the e-commerce person instead.

• Amazon has aggregate maturation levers that are dominating home and planetary markets, portion UPS has less options.

• 10 stocks we similar amended than Amazon ›

United Parcel Service (NYSE: UPS) is 1 of the astir recognizable freight and logistics companies connected the planet. Chances are, you spot aggregate UPS trucks each week. It's an indispensable business, but being captious to nine doesn't warrant important banal gains.

UPS banal has really been sliding successful caller years. The stock terms is down astir 37% implicit the past 5 years, but its 6.43% dividend output cushions immoderate of the blow.

While the banal whitethorn not beryllium a large concern close now, you tin inactive find bully banal ideas by looking astatine what UPS delivers. The institution transports millions of products to people's doors, and astir of those products hap to beryllium successful Amazon (NASDAQ: AMZN) boxes.

UPS delivers the boxes, but you whitethorn privation to put successful Amazon banal for higher returns.

UPS' superior concern is serving the freight and logistics market, which limits it successful immoderate ways. UPS doesn't person arsenic galore earthy avenues for enlargement into antithetic industries. Amazon, connected the different hand, has benefited from its acquisitions of companies similar Whole Foods, MGM Entertainment, and Ring. Amazon besides created AWS internally, and that unreality level has been a cardinal portion of Amazon's business.

The e-commerce elephantine besides generates gross and benefits from synergies associated with its online ads and AI spot improvement efforts. Multiple parts of Amazon's concern delivered double-digit gross maturation rates and proceed to summation marketplace share. Meanwhile, UPS reported a 4% year-over-year gross alteration successful the 3rd 4th of 2025.

The quality of Amazon's concern besides allows for higher nett margins. While UPS relies connected low-margin logistics, Amazon taps into high-profit concern segments similar unreality computing, online ads, and artificial intelligence. While its online marketplace typically has debased margins, the different concern segments equilibrium it retired and connection a semipermanent way to higher profitability.

U.S. income are a cardinal conception for immoderate corp since American consumers thin to walk the most. Declining maturation rates successful this marketplace marque it much hard to summation marketplace share, which UPS is presently witnessing.