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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) - free report >>
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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) - free report >>
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HUBG vs. PAC: Which Stock Should Value Investors Buy Now?
Investors with an interest in Transportation - Services stocks have likely encountered both Hub Group (HUBG - Free Report) and Grupo Aeroportuario del Pacifico (PAC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Hub Group has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Pacifico has a Zacks Rank of #3 (Hold). This means that HUBG'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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
HUBG currently has a forward P/E ratio of 20.90, while PAC has a forward P/E of 21.58. We also note that HUBG has a PEG ratio of 1.39. 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. PAC currently has a PEG ratio of 4.59.
Another notable valuation metric for HUBG is its P/B ratio of 2.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PAC has a P/B of 4.52.
Based on these metrics and many more, HUBG holds a Value grade of A, while PAC has a Value grade of D.
HUBG sticks out from PAC in both our Zacks Rank and Style Scores models, so value investors will likely feel that HUBG is the better option right now.