Comparing ZTO Express (ZTO) and BEST (BSTI)

ZTO Express (NYSE: ZTO) and BEST (NYSE:BSTI) are both mid-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

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This is a breakdown of recent ratings and target prices for ZTO Express and BEST, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ZTO Express 1 0 2 0 2.33
BEST 0 0 8 0 3.00

ZTO Express currently has a consensus price target of $17.90, suggesting a potential upside of 20.13%. BEST has a consensus price target of $14.52, suggesting a potential upside of 42.63%. Given BEST’s stronger consensus rating and higher probable upside, analysts plainly believe BEST is more favorable than ZTO Express.

Insider and Institutional Ownership

28.8% of ZTO Express shares are held by institutional investors. Comparatively, 11.0% of BEST shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares ZTO Express and BEST’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ZTO Express $2.01 billion 3.77 $485.63 million $0.69 21.59
BEST $3.07 billion 1.22 -$188.72 million N/A N/A

ZTO Express has higher earnings, but lower revenue than BEST.

Profitability

This table compares ZTO Express and BEST’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ZTO Express 24.26% 15.52% 13.11%
BEST N/A N/A N/A

Summary

ZTO Express beats BEST on 6 of the 10 factors compared between the two stocks.

About ZTO Express

ZTO Express (Cayman) Inc., through its subsidiaries, provides express delivery and other value-added logistics services in China. It offers delivery services for e-commerce merchants, traditional merchants, and other express service users, as well as through business partners. As of December 31, 2016, the company operated a fleet of approximately 2,900 self-owned trucks. ZTO Express (Cayman) Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.

About BEST

BEST Inc. operates as a smart supply chain service provider in the People's Republic of China. Its proprietary technology platform enables its ecosystem participants to operate their businesses through various SaaS-based applications. The company applies its technologies to a range of applications, such as network and route optimization, swap bodies, sorting line automation, smart warehouses, and store management. It offers integrated services and solutions across the supply chain, including warehouse management, order fulfillment, express delivery, freight, and other services for multinational and corporate customers, as well as small and medium enterprises. The company also provides express delivery services; and door-to-door integrated cross-border supply chain services to and from China, including international express, less-than-truckload, fulfillment, reverse logistics, and freight forwarding through its network, and transportation and warehouse partners. In addition, it operates real-time bidding platform to source truckload capacity from independent transportation service providers and agents; and offers online merchandise sourcing and store management services for convenience stores, as well as last-mile B2C services, such as parcel pick-up and drop-off, bill payment, and laundry services. Further, BEST Inc. provides various value-added services, including customized financial services, such as fleet and equipment finance leases; and centralized sourcing of products and services, such as bulk procurement of trucks and accessories. The company was founded in 2007 and is headquartered in Hangzhou, the People's Republic of China.

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