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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>
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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>
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ECHO vs. ASR: Which Stock Is the Better Value Option?
Investors interested in Transportation - Services stocks are likely familiar with Echo Global Logistics and Grupo Aeroportuario del Sureste (ASR - 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.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Echo Global Logistics has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Sureste has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ECHO likely has seen a stronger improvement to its earnings outlook than ASR has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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 17.76, while ASR has a forward P/E of 33.92. We also note that ECHO has a PEG ratio of 1.02. 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. ASR currently has a PEG ratio of 7.71.
Another notable valuation metric for ECHO is its P/B ratio of 2.16. 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, ASR has a P/B of 2.81.
These are just a few of the metrics contributing to ECHO's Value grade of B and ASR's Value grade of D.
ECHO sticks out from ASR in both our Zacks Rank and Style Scores models, so value investors will likely feel that ECHO is the better option right now.