ECHO or ASR: Which Is the Better Value Stock Right Now?

ASR

Investors interested in stocks from the Transportation - Services sector have probably already heard of Echo Global Logistics and Grupo Aeroportuario del Sureste (ASR - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Currently, both Echo Global Logistics and Grupo Aeroportuario del Sureste are holding a Zacks Rank of # 2 (Buy). 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. But this is just one piece of the puzzle for value investors.

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.

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.

ECHO currently has a forward P/E ratio of 25.03, while ASR has a forward P/E of 47.71. We also note that ECHO has a PEG ratio of 1.43. 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 10.84.

Another notable valuation metric for ECHO is its P/B ratio of 2.05. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ASR has a P/B of 2.42.

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

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

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