Cramer: I like FedEx over UPS

UPS ( UPS) may be a well-run company, Jim Cramer says, but he is concerned about the company's recent purchase of Dutch rival TNT. UPS paid a premium for TNT at a time when European markets are showing little growth.

"Is this the right time? And I say is this the right time because I am not hearing any growth out of Europe other than Germany. Now maybe the German business is so strong it makes senses. Maybe people feel like that UPS is taking a long view. I would not have done this deal unless I felt that maybe FedEx was going to buy them as a competitive deal," Cramer said.

Cramer says that a slowdown in Europe could hold back the American economy. By owning UPS, an investor is doubling down on that risk by being in both markets. FedEx ( FDX), without that European exposure is a better buy. Though he thinks UPS is a well-run company with a nice dividend, he says it has to come down.

At the time of publication, Cramer was long XXX.

More from Opinion

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Time to Talk Tesla: What Happened This Week, Elon?

Time to Talk Tesla: What Happened This Week, Elon?