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

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

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.

Currently, both Schneider National and C.H. Robinson Worldwide are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

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 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 17.73, while CHRW has a forward P/E of 21.56. We also note that SNDR has a PEG ratio of 1.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHRW currently has a PEG ratio of 2.40.

Another notable valuation metric for SNDR is its P/B ratio of 2.39. 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, CHRW has a P/B of 8.86.

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

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

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