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DHLGY or KHNGY: Which Is the Better Value Stock Right Now?

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Investors interested in Transportation - Services stocks are likely familiar with DHL AG (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 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.

Right now, both DHL AG and Kuehne & Nagel International Ag are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

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.

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.

DHLGY currently has a forward P/E ratio of 16.11, while KHNGY has a forward P/E of 25.69. We also note that DHLGY has a PEG ratio of 1.51. 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. KHNGY currently has a PEG ratio of 3.46.

Another notable valuation metric for DHLGY is its P/B ratio of 2.74. 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 12.78.

Based on these metrics and many more, DHLGY holds a Value grade of A, while KHNGY has a Value grade of C.

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

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