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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>
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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>
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ZTO vs. ASR: Which Stock Is the Better Value Option?
Investors looking for stocks in the Transportation - Services sector might want to consider either ZTO Express (Cayman) Inc. (ZTO - Free Report) or Grupo Aeroportuario del Sureste (ASR - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
ZTO Express (Cayman) Inc. has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Sureste has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ZTO has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ZTO currently has a forward P/E ratio of 14.06, while ASR has a forward P/E of 14.75. We also note that ZTO has a PEG ratio of 1.46. 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. ASR currently has a PEG ratio of 3.35.
Another notable valuation metric for ZTO is its P/B ratio of 1.84. 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, ASR has a P/B of 3.65.
Based on these metrics and many more, ZTO holds a Value grade of B, while ASR has a Value grade of D.
ZTO has seen stronger estimate revision activity and sports more attractive valuation metrics than ASR, so it seems like value investors will conclude that ZTO is the superior option right now.