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DHLGY vs. EXPD: 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 Expeditors International (EXPD - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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.

Both DHL Group Sponsored ADR and Expeditors International have a Zacks Rank of #1 (Strong Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.

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 13.83, while EXPD has a forward P/E of 23.67. We also note that DHLGY has a PEG ratio of 1.43. 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. EXPD currently has a PEG ratio of 2.64.

Another notable valuation metric for DHLGY is its P/B ratio of 2.36. 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, EXPD has a P/B of 9.05.

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

Both DHLGY and EXPD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DHLGY is the superior value option right now.

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