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TFII or CHRW: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Transportation - Services sector might want to consider either TFI International Inc. (TFII - Free Report) or C.H. Robinson Worldwide (CHRW - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, TFI International Inc. has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TFII has an improving earnings outlook. However, value investors will care about much more than just this.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

TFII currently has a forward P/E ratio of 16.44, while CHRW has a forward P/E of 17.33. We also note that TFII has a PEG ratio of 0.86. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CHRW currently has a PEG ratio of 1.93.

Another notable valuation metric for TFII is its P/B ratio of 4.47. 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, CHRW has a P/B of 7.06.

Based on these metrics and many more, TFII holds a Value grade of B, while CHRW has a Value grade of C.

TFII sticks out from CHRW in both our Zacks Rank and Style Scores models, so value investors will likely feel that TFII is the better option right now.


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C.H. Robinson Worldwide, Inc. (CHRW) - free report >>

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