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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 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, DHL Group Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Kuehne & Nagel International Ag has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DHLGY likely has seen a stronger improvement to its earnings outlook than KHNGY has recently. But this is just one factor that value investors are interested in.

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.

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.

DHLGY currently has a forward P/E ratio of 15.36, while KHNGY has a forward P/E of 21.22. We also note that DHLGY has a PEG ratio of 1.60. 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. KHNGY currently has a PEG ratio of 3.63.

Another notable valuation metric for DHLGY is its P/B ratio of 2.51. 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 8.59.

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

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

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