ZTO Express (Cayman) Inc. or Graco Inc.: Who Manages SG&A Costs Better?

SG&A Cost Management: A Tale of Two Companies

In the competitive world of logistics and manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. ZTO Express (Cayman) Inc. and Graco Inc. offer a fascinating study in contrasts. From 2014 to 2023, ZTO Express saw its SG&A expenses grow by approximately 354%, reflecting its rapid expansion in the logistics sector. In contrast, Graco Inc., a stalwart in the manufacturing industry, managed a more modest increase of around 43% over the same period.

A Decade of Financial Strategy

While ZTO Express's expenses surged, Graco Inc. maintained a steady trajectory, suggesting a more controlled approach to cost management. The data for 2024 is incomplete, but the trends are clear: ZTO's aggressive growth strategy comes with higher costs, whereas Graco's conservative approach may offer stability. Investors and analysts should consider these strategies when evaluating long-term financial health.