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

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Investors interested in stocks from the Transportation - Services sector have probably already heard of DHL Group Sponsored ADR (DHLGY - Free Report) and C.H. Robinson Worldwide (CHRW - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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

DHL Group Sponsored ADR has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DHLGY has an improving earnings outlook. But this is only part of the picture 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.

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.

DHLGY currently has a forward P/E ratio of 13.08, while CHRW has a forward P/E of 19.72. We also note that DHLGY has a PEG ratio of 1.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CHRW currently has a PEG ratio of 1.54.

Another notable valuation metric for DHLGY is its P/B ratio of 2.09. 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, CHRW has a P/B of 6.43.

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

DHLGY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DHLGY is likely the superior value option right now.


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

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