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SNDR vs. CHRW: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Transportation - Services sector might want to consider either Schneider National (SNDR - Free Report) or C.H. Robinson Worldwide (CHRW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Schneider National has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold) 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. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

SNDR currently has a forward P/E ratio of 20.27, while CHRW has a forward P/E of 20.66. We also note that SNDR has a PEG ratio of 1.56. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CHRW currently has a PEG ratio of 2.30.

Another notable valuation metric for SNDR is its P/B ratio of 2.71. 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, CHRW has a P/B of 8.53.

Based on these metrics and many more, SNDR holds a Value grade of B, while CHRW has a Value grade of C.

SNDR sticks out from CHRW in both our Zacks Rank and Style Scores models, so value investors will likely feel that SNDR is the better option right now.


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C.H. Robinson Worldwide, Inc. (CHRW) - free report >>

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