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SNDR vs. ZTO: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Transportation - Services sector might want to consider either Schneider National (SNDR - Free Report) or ZTO Express Cayman Inc. (ZTO - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Currently, Schneider National has a Zacks Rank of #1 (Strong Buy), while ZTO Express Cayman Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SNDR is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 10.28, while ZTO has a forward P/E of 25.66. We also note that SNDR has a PEG ratio of 0.50. 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. ZTO currently has a PEG ratio of 1.42.
Another notable valuation metric for SNDR is its P/B ratio of 1.99. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ZTO has a P/B of 2.60.
These are just a few of the metrics contributing to SNDR's Value grade of B and ZTO's Value grade of C.
SNDR has seen stronger estimate revision activity and sports more attractive valuation metrics than ZTO, so it seems like value investors will conclude that SNDR is the superior option right now.
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SNDR vs. ZTO: Which Stock Is the Better Value Option?
Investors looking for stocks in the Transportation - Services sector might want to consider either Schneider National (SNDR - Free Report) or ZTO Express Cayman Inc. (ZTO - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Currently, Schneider National has a Zacks Rank of #1 (Strong Buy), while ZTO Express Cayman Inc. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SNDR is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 10.28, while ZTO has a forward P/E of 25.66. We also note that SNDR has a PEG ratio of 0.50. 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. ZTO currently has a PEG ratio of 1.42.
Another notable valuation metric for SNDR is its P/B ratio of 1.99. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ZTO has a P/B of 2.60.
These are just a few of the metrics contributing to SNDR's Value grade of B and ZTO's Value grade of C.
SNDR has seen stronger estimate revision activity and sports more attractive valuation metrics than ZTO, so it seems like value investors will conclude that SNDR is the superior option right now.