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SNDR or ZTO: Which Is the Better Value Stock Right Now?

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Investors interested in Transportation - Services stocks are likely familiar with Schneider National (SNDR - Free Report) and ZTO Express Cayman Inc. (ZTO - Free Report) . 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Schneider National has a Zacks Rank of #1 (Strong Buy), while ZTO Express Cayman Inc. has a Zacks Rank of #2 (Buy) right now. This means that SNDR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SNDR currently has a forward P/E ratio of 11.86, while ZTO has a forward P/E of 34.28. We also note that SNDR has a PEG ratio of 0.66. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ZTO currently has a PEG ratio of 1.88.

Another notable valuation metric for SNDR is its P/B ratio of 1.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZTO has a P/B of 2.62.

These metrics, and several others, help SNDR earn a Value grade of B, while ZTO has been given a Value grade of D.

SNDR stands above ZTO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNDR is the superior value option right now.


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ZTO Express (Cayman) Inc. (ZTO) - free report >>

Schneider National, Inc. (SNDR) - free report >>

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