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ECHO vs. ASR: Which Stock Should Value Investors Buy Now?

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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 presents investors with the better value opportunity right now? Let's take a closer look.

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.

Right now, both Echo Global Logistics and Grupo Aeroportuario del Sureste are sporting a Zacks Rank of # 2 (Buy). 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 factor that value investors are interested in.

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.

ECHO currently has a forward P/E ratio of 24.96, while ASR has a forward P/E of 56.84. We also note that ECHO has a PEG ratio of 1.43. 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. ASR currently has a PEG ratio of 12.92.

Another notable valuation metric for ECHO is its P/B ratio of 2.04. 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, ASR has a P/B of 2.41.

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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