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

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Investors looking for stocks in the Transportation - Services sector might want to consider either Schneider National (SNDR - Free Report) or Grupo Aeroportuario del Centro Norte (OMAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Schneider National and Grupo Aeroportuario del Centro Norte are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

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 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.

SNDR currently has a forward P/E ratio of 13.14, while OMAB has a forward P/E of 22.55. We also note that SNDR has a PEG ratio of 0.94. 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. OMAB currently has a PEG ratio of 7.52.

Another notable valuation metric for SNDR is its P/B ratio of 1.84. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OMAB has a P/B of 4.03.

Based on these metrics and many more, SNDR holds a Value grade of A, while OMAB has a Value grade of D.

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


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Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) - free report >>

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

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