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

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Investors with an interest in Transportation - Services stocks have likely encountered both Schneider National (SNDR - Free Report) and Grupo Aeroportuario del Pacifico (PAC - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Schneider National and Grupo Aeroportuario del Pacifico are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SNDR has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SNDR currently has a forward P/E ratio of 23.68, while PAC has a forward P/E of 33.28. We also note that SNDR has a PEG ratio of 3.62. 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. PAC currently has a PEG ratio of 6.95.

Another notable valuation metric for SNDR is its P/B ratio of 2.11. 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, PAC has a P/B of 4.39.

These metrics, and several others, help SNDR earn a Value grade of A, while PAC has been given a Value grade of D.

SNDR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SNDR is likely the superior value option right now.


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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) - free report >>

Schneider National, Inc. (SNDR) - free report >>

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