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SNDR vs. ASR: 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 Sureste (ASR - 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.

Both Schneider National and Grupo Aeroportuario del Sureste have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 12.43, while ASR has a forward P/E of 23.13. We also note that SNDR has a PEG ratio of 0.69. 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. ASR currently has a PEG ratio of 5.26.

Another notable valuation metric for SNDR is its P/B ratio of 2.08. 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 2.80.

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

Both SNDR and ASR 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 Sureste, S.A. de C.V. (ASR) - free report >>

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

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