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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 is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both TFI International Inc. and C.H. Robinson Worldwide have a Zacks Rank of # 1 (Strong 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. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

TFII currently has a forward P/E ratio of 13.77, while CHRW has a forward P/E of 13.83. We also note that TFII has a PEG ratio of 0.63. 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. CHRW currently has a PEG ratio of 1.54.

Another notable valuation metric for TFII is its P/B ratio of 4.03. 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, CHRW has a P/B of 7.08.

These are just a few of the metrics contributing to TFII's Value grade of B and CHRW's Value grade of C.

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


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

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