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TFII or CHRW: Which Is the Better Value Stock Right Now?

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Investors interested in Transportation - Services stocks are likely familiar with TFI International Inc. (TFII - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, TFI International Inc. has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold). This means that TFII's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 22.64, while CHRW has a forward P/E of 23.88. We also note that TFII has a PEG ratio of 0.85. 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. CHRW currently has a PEG ratio of 1.25.

Another notable valuation metric for TFII is its P/B ratio of 4.12. 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 10.6.

Based on these metrics and many more, TFII holds a Value grade of B, while CHRW has a Value grade of C.

TFII sticks out from CHRW in both our Zacks Rank and Style Scores models, so value investors will likely feel that TFII is the better option right now.

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