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OMAB vs. EXPD: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Transportation - Services sector have probably already heard of Grupo Aeroportuario del Centro Norte (OMAB - Free Report) and Expeditors International (EXPD - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both Grupo Aeroportuario del Centro Norte and Expeditors International are sporting a Zacks Rank of #2 (Buy). 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 only part of the picture for value investors.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

OMAB currently has a forward P/E ratio of 13.23, while EXPD has a forward P/E of 24.81. We also note that OMAB has a PEG ratio of 1.19. 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. EXPD currently has a PEG ratio of 1.49.

Another notable valuation metric for OMAB is its P/B ratio of 7.3. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EXPD has a P/B of 11.77.

These are just a few of the metrics contributing to OMAB's Value grade of B and EXPD's Value grade of D.

Both OMAB and EXPD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that OMAB is the superior value option right now.

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