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TFII vs. CHRW: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Transportation - Services stocks have likely encountered both TFI International Inc. (TFII - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, TFI International Inc. has a Zacks Rank of #1 (Strong Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TFII likely has seen a stronger improvement to its earnings outlook than CHRW has recently. However, value investors will care about much more than just this.

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.

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.

TFII currently has a forward P/E ratio of 22.17, while CHRW has a forward P/E of 23.88. We also note that TFII has a PEG ratio of 0.83. 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 1.26.

Another notable valuation metric for TFII is its P/B ratio of 4.04. 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, CHRW has a P/B of 10.64.

These are just a few of the metrics contributing to TFII's Value grade of B and CHRW's Value grade of C.

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

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