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SNDR vs. EXPD: Which Stock Is the Better Value Option?

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Investors with an interest in Transportation - Services stocks have likely encountered both Schneider National (SNDR - Free Report) and Expeditors International (EXPD - 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 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.

Right now, both Schneider National and Expeditors International are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.

SNDR currently has a forward P/E ratio of 18.69, while EXPD has a forward P/E of 22.91. We also note that SNDR has a PEG ratio of 1.44. 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 2.86.

Another notable valuation metric for SNDR is its P/B ratio of 2.51. 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, EXPD has a P/B of 6.41.

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

Both SNDR and EXPD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SNDR is the superior value option right now.


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Expeditors International of Washington, Inc. (EXPD) - free report >>

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