Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors interested in Transportation - Services stocks are likely familiar with 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, DHL Group Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DHLGY likely has seen a stronger improvement to its earnings outlook than CHRW has recently. But this is just one piece of the puzzle 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 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 13.49, while CHRW has a forward P/E of 20.04. We also note that DHLGY has a PEG ratio of 1.44. 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 1.57.

Another notable valuation metric for DHLGY is its P/B ratio of 2.13. 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 6.53.

These metrics, and several others, help DHLGY earn a Value grade of A, while CHRW has been given a Value grade of C.

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


See More Zacks Research for These Tickers


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


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

DHL Group Sponsored ADR (DHLGY) - free report >>

Published in