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

ASR SNDR

Investors interested in Transportation - Services stocks are likely familiar with Schneider National (SNDR - Free Report) and Grupo Aeroportuario del Sureste (ASR - 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Both Schneider National and Grupo Aeroportuario del Sureste have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SNDR currently has a forward P/E ratio of 19.82, while ASR has a forward P/E of 44.23. We also note that SNDR has a PEG ratio of 3.03. 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. ASR currently has a PEG ratio of 10.05.

Another notable valuation metric for SNDR is its P/B ratio of 1.84. 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, ASR has a P/B of 1.97.

These are just a few of the metrics contributing to SNDR's Value grade of A and ASR's Value grade of C.

Both SNDR and ASR 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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