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SNDR vs. CHRW: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Transportation - Services sector might want to consider either Schneider National (SNDR - Free Report) or 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Schneider National has a Zacks Rank of #2 (Buy), while C.H. Robinson Worldwide has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SNDR likely has seen a stronger improvement to its earnings outlook than CHRW has recently. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SNDR currently has a forward P/E ratio of 17.51, while CHRW has a forward P/E of 20.66. We also note that SNDR has a PEG ratio of 1.35. 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 2.30.

Another notable valuation metric for SNDR is its P/B ratio of 2.37. 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 8.50.

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

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


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C.H. Robinson Worldwide, Inc. (CHRW) - free report >>

Schneider National, Inc. (SNDR) - free report >>