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DHLGY or CHRW: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Transportation - Services sector might want to consider either DHL Group Sponsored ADR (DHLGY - Free Report) or C.H. Robinson Worldwide (CHRW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify 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. Investors should feel comfortable knowing that DHLGY likely has seen a stronger improvement to its earnings outlook than CHRW has recently. 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 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 15.24, while CHRW has a forward P/E of 33.16. We also note that DHLGY has a PEG ratio of 1.94. 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 2.16.
Another notable valuation metric for DHLGY is its P/B ratio of 2.58. 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 10.47.
These are just a few of the metrics contributing to DHLGY's Value grade of A and CHRW's Value grade of D.
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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DHLGY or CHRW: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Transportation - Services sector might want to consider either DHL Group Sponsored ADR (DHLGY - Free Report) or C.H. Robinson Worldwide (CHRW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify 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. Investors should feel comfortable knowing that DHLGY likely has seen a stronger improvement to its earnings outlook than CHRW has recently. 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 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 15.24, while CHRW has a forward P/E of 33.16. We also note that DHLGY has a PEG ratio of 1.94. 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 2.16.
Another notable valuation metric for DHLGY is its P/B ratio of 2.58. 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 10.47.
These are just a few of the metrics contributing to DHLGY's Value grade of A and CHRW's Value grade of D.
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.