ZTO or DSDVY: Which Is the Better Value Stock Right Now?

ZTO DSDVY

Investors interested in Transportation - Services stocks are likely familiar with ZTO Express (Cayman) Inc. (ZTO - Free Report) and DSV (DSDVY - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both ZTO Express (Cayman) Inc. and DSV have 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. However, value investors will care about much more than just this.

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.

ZTO currently has a forward P/E ratio of 16.44, while DSDVY has a forward P/E of 22.02. We also note that ZTO has a PEG ratio of 0.88. 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. DSDVY currently has a PEG ratio of 3.14.

Another notable valuation metric for ZTO is its P/B ratio of 1.98. 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, DSDVY has a P/B of 4.10.

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

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

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