ZTO Express (Cayman) (NYSE: ZTO) has emerged as a more attractive investment option compared to Freight Technologies (NASDAQ: FRGT), based on a comprehensive analysis of their financial performance and market standing. The evaluation considers several factors, including earnings strength, risk levels, profitability, valuation, dividends, institutional ownership, and analyst recommendations.
Analyst Recommendations and Price Targets
Current ratings from analysts reveal a preference for ZTO Express over Freight Technologies. According to MarketBeat, ZTO Express holds a consensus rating score of 12.71, with no sell ratings and three buy ratings. In contrast, Freight Technologies has a rating score of 1.00, with one hold rating and no buy ratings. ZTO Express also has a consensus price target of $22.36, suggesting a potential upside of 18.65%. This indicates that analysts are more optimistic about ZTO Express’s future performance compared to Freight Technologies.
Profitability and Earnings Comparison
When examining profitability, ZTO Express demonstrates significant advantages. The company’s net margin stands at 18.83%, with a return on equity of 14.44% and a return on assets of 9.72%. Conversely, Freight Technologies does not publicly disclose its margin and returns, highlighting a gap in available financial data.
Revenue figures further underscore ZTO Express’s dominance. The company reported gross revenue of $6.07 billion and a net income of $1.21 billion, resulting in earnings per share of $1.48. Freight Technologies, by comparison, reported gross revenue of only $13.73 million with a net loss of $5.60 million, translating to negative earnings per share of ($2.90). ZTO Express also has a price-to-earnings ratio of 12.73, while Freight Technologies has a significantly lower ratio of -0.29, indicating that ZTO Express is currently perceived as a more valuable investment.
Risk and Volatility Assessment
In terms of volatility, ZTO Express has a beta of -0.2, suggesting its stock is 120% less volatile than the S&P 500 index. This positions ZTO as a potentially safer investment. On the other hand, Freight Technologies has a beta of 1.24, indicating its stock is 24% more volatile than the benchmark, which could pose higher risks to investors.
Institutional Ownership Insights
Institutional ownership also reveals investor confidence levels in these companies. Approximately 41.7% of ZTO Express shares are held by institutional investors, compared to just 6.2% for Freight Technologies. Additionally, insider ownership is notably higher for ZTO Express at 41.3%, while Freight Technologies has 9.0% insider ownership. This strong institutional backing for ZTO Express could indicate a favorable outlook for long-term growth.
In summary, ZTO Express (Cayman) outperforms Freight Technologies across 14 of the 15 evaluated factors. This analysis suggests that ZTO Express presents a more robust investment opportunity, driven by superior financial performance and investor confidence.
About ZTO Express (Cayman): Founded in 2002 and headquartered in Shanghai, China, ZTO Express provides express delivery and value-added logistics services across the People’s Republic of China.
About Freight Technologies: Established in 2015 and based in The Woodlands, Texas, Freight Technologies operates a transportation logistics technology platform focused on cross-border shipping between the United States and Mexico. Its Fr8App platform facilitates various services, including freight brokerage and transport management solutions for clients in the logistics sector.