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

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Investors interested in Transportation - Services stocks are likely familiar with Kuehne & Nagel International Ag (KHNGY - 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.

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.

Kuehne & Nagel International Ag and C.H. Robinson Worldwide are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KHNGY has an improving earnings outlook. But this is only part of the picture for value investors.

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.

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.

KHNGY currently has a forward P/E ratio of 23.82, while CHRW has a forward P/E of 29.14. We also note that KHNGY has a PEG ratio of 1.30. 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 1.85.

Another notable valuation metric for KHNGY is its P/B ratio of 10.1. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CHRW has a P/B of 10.86.

Based on these metrics and many more, KHNGY holds a Value grade of B, while CHRW has a Value grade of D.

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


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

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