UPS & FedEx: The Bear and Bull Debate

While most of the media attention on UPS (NYSE: UPS) and FedEx (NYSE: FDX) has been centered on the ongoing fascination with potential competition coming from Amazon's plans to expand delivery services, there is another, somewhat connected, issue at stake in the bull and bear debate. Simply put, the question is whether servicing burgeoning e-commerce growth means giving up margins and free cash flow (FCF) generation or not. Let's take a closer look at what's going on between these two delivery titans.

Image source: Getty Images.

The two package delivery giants have long been seen as ways to play growth in e-commerce. It's a compelling argument, and there's no doubt that UPS and FedEx have both seen volume growth as a consequence. However, there are some sticking points here.

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Source Fool.com