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

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Investors looking for stocks in the Transportation - Services sector might want to consider either Schneider National (SNDR - Free Report) or Grupo Aeroportuario del Centro Norte (OMAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

Currently, Schneider National has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Centro Norte has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SNDR likely has seen a stronger improvement to its earnings outlook than OMAB has recently. But this is just one factor that value investors are interested in.

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.

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.

SNDR currently has a forward P/E ratio of 14.28, while OMAB has a forward P/E of 15.26. We also note that SNDR has a PEG ratio of 1.10. 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. OMAB currently has a PEG ratio of 5.09.

Another notable valuation metric for SNDR is its P/B ratio of 1.94. 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, OMAB has a P/B of 4.57.

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

SNDR stands above OMAB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNDR is the superior value option right now.


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Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) - free report >>

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

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