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

CHRW TFII

Investors interested in stocks from the Transportation - Services sector have probably already heard of TFI International Inc. (TFII - 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.

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

TFI International Inc. and C.H. Robinson Worldwide are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

TFII currently has a forward P/E ratio of 12.76, while CHRW has a forward P/E of 13.20. We also note that TFII has a PEG ratio of 0.66. 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. CHRW currently has a PEG ratio of 1.47.

Another notable valuation metric for TFII is its P/B ratio of 3.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CHRW has a P/B of 5.89.

These metrics, and several others, help TFII earn a Value grade of B, while CHRW has been given a Value grade of C.

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

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