Back to top

Image: Bigstock

TFII vs. PAC: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in stocks from the Transportation - Services sector have probably already heard of TFI International Inc. (TFII - Free Report) and Grupo Aeroportuario del Pacifico (PAC - 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 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.

Both TFI International Inc. and Grupo Aeroportuario del Pacifico 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 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.

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 11.17, while PAC has a forward P/E of 17.81. We also note that TFII has a PEG ratio of 0.55. 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. PAC currently has a PEG ratio of 1.51.

Another notable valuation metric for TFII is its P/B ratio of 3.40. 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, PAC has a P/B of 8.73.

These metrics, and several others, help TFII earn a Value grade of B, while PAC has been given a Value grade of D.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) - free report >>

TFI International Inc. (TFII) - free report >>

Published in