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ZTO 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 ZTO Express (Cayman) Inc. (ZTO - Free Report) and 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
ZTO Express (Cayman) Inc. has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold) right now. This means that ZTO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
ZTO currently has a forward P/E ratio of 11.39, while CHRW has a forward P/E of 31.37. We also note that ZTO has a PEG ratio of 0.84. 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 1.65.
Another notable valuation metric for ZTO is its P/B ratio of 1.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CHRW has a P/B of 13.22.
Based on these metrics and many more, ZTO holds a Value grade of A, while CHRW has a Value grade of D.
ZTO stands above CHRW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZTO is the superior value option right now.
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ZTO vs. CHRW: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Services sector have probably already heard of ZTO Express (Cayman) Inc. (ZTO - Free Report) and 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
ZTO Express (Cayman) Inc. has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold) right now. This means that ZTO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
ZTO currently has a forward P/E ratio of 11.39, while CHRW has a forward P/E of 31.37. We also note that ZTO has a PEG ratio of 0.84. 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 1.65.
Another notable valuation metric for ZTO is its P/B ratio of 1.39. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CHRW has a P/B of 13.22.
Based on these metrics and many more, ZTO holds a Value grade of A, while CHRW has a Value grade of D.
ZTO stands above CHRW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ZTO is the superior value option right now.