DHLGY vs. RXO: Which Stock Is the Better Value Option?

RXO DHLGY

Investors looking for stocks in the Transportation - Services sector might want to consider either DHL Group Sponsored ADR (DHLGY - Free Report) or RXO (RXO - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

DHL Group Sponsored ADR and RXO are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that DHLGY likely has seen a stronger improvement to its earnings outlook than RXO has recently. 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.

DHLGY currently has a forward P/E ratio of 13.32, while RXO has a forward P/E of 45.28. We also note that DHLGY has a PEG ratio of 1.04. 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. RXO currently has a PEG ratio of 3.48.

Another notable valuation metric for DHLGY is its P/B ratio of 2.39. 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, RXO has a P/B of 4.33.

Based on these metrics and many more, DHLGY holds a Value grade of B, while RXO has a Value grade of D.

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

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