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DHLGY vs. CHRW: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Transportation - Services stocks have likely encountered both DHL Group Sponsored ADR (DHLGY - Free Report) and 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

DHL Group Sponsored ADR has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #4 (Sell) right now. This means that DHLGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

DHLGY currently has a forward P/E ratio of 13.06, while CHRW has a forward P/E of 22.06. We also note that DHLGY has a PEG ratio of 1.02. 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. CHRW currently has a PEG ratio of 3.68.

Another notable valuation metric for DHLGY is its P/B ratio of 2.43. 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 7.22.

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

DHLGY has seen stronger estimate revision activity and sports more attractive valuation metrics than CHRW, so it seems like value investors will conclude that DHLGY is the superior option right now.


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