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

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Investors with an interest in Transportation - Services stocks have likely encountered both Kuehne & Nagel International Ag (KHNGY - Free Report) and Grupo Aeroportuario del Pacifico (PAC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Kuehne & Nagel International Ag has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Pacifico has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that KHNGY likely has seen a stronger improvement to its earnings outlook than PAC has recently. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

KHNGY currently has a forward P/E ratio of 19.09, while PAC has a forward P/E of 20.13. We also note that KHNGY has a PEG ratio of 1.04. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PAC currently has a PEG ratio of 2.32.

Another notable valuation metric for KHNGY is its P/B ratio of 8.59. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PAC has a P/B of 8.71.

These are just a few of the metrics contributing to KHNGY's Value grade of B and PAC's Value grade of D.

KHNGY stands above PAC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KHNGY is the superior value option right now.

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