Investors interested in stocks from the Transportation - Services sector have probably already heard of DHL Group Sponsored ADR (DHLGY) and Expeditors International (EXPD). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
DHL Group Sponsored ADR and Expeditors International are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DHLGY has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
DHLGY currently has a forward P/E ratio of 14.38, while EXPD has a forward P/E of 26.63. We also note that DHLGY has a PEG ratio of 1.83. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EXPD currently has a PEG ratio of 3.14.
Another notable valuation metric for DHLGY is its P/B ratio of 2.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EXPD has a P/B of 9.47.
Based on these metrics and many more, DHLGY holds a Value grade of A, while EXPD has a Value grade of D.
DHLGY sticks out from EXPD in both our Zacks Rank and Style Scores models, so value investors will likely feel that DHLGY is the better option right now.
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DHL Group Sponsored ADR (DHLGY): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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