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ASR vs. CHRW: Which Stock Is the Better Value Option?

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Investors interested in Transportation - Services stocks are likely familiar with Grupo Aeroportuario del Sureste (ASR - 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.

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

Currently, Grupo Aeroportuario del Sureste 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 ASR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ASR currently has a forward P/E ratio of 2.21, while CHRW has a forward P/E of 25.88. We also note that ASR has a PEG ratio of 0.78. 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 1.43.

Another notable valuation metric for ASR is its P/B ratio of 2.73. 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, CHRW has a P/B of 8.45.

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

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


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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>

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

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