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

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Investors with an interest in Transportation - Services stocks have likely encountered both DHL Group Sponsored ADR (DHLGY - Free Report) and Kuehne & Nagel International Ag (KHNGY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

DHL Group Sponsored ADR and Kuehne & Nagel International Ag are both sporting a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

DHLGY currently has a forward P/E ratio of 15.78, while KHNGY has a forward P/E of 22.13. We also note that DHLGY has a PEG ratio of 1.63. 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. KHNGY currently has a PEG ratio of 3.75.

Another notable valuation metric for DHLGY is its P/B ratio of 2.56. 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, KHNGY has a P/B of 8.95.

Based on these metrics and many more, DHLGY holds a Value grade of A, while KHNGY has a Value grade of C.

Both DHLGY and KHNGY 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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