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

Managing SG&A Costs: Axon vs. ZTO Express

In the competitive landscape of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Axon Enterprise, Inc. and ZTO Express (Cayman) Inc. offer a fascinating comparison in this regard. Over the past decade, ZTO Express has consistently reported higher SG&A expenses, peaking at approximately $2.4 billion in 2023, a staggering 350% increase from 2014. In contrast, Axon Enterprise's SG&A expenses grew by about 800% over the same period, reaching nearly $500 million in 2023.

While ZTO Express's expenses are significantly higher, their growth rate is more moderate compared to Axon. This suggests that Axon is rapidly expanding its operations, potentially investing heavily in marketing and administrative capabilities. Investors and analysts should consider these trends when evaluating the operational efficiency and strategic priorities of these companies. Understanding these dynamics can provide deeper insights into their financial health and future growth potential.