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HUBG or ASR: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Transportation - Services sector have probably already heard of Hub Group (HUBG - Free Report) and Grupo Aeroportuario del Sureste (ASR - 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 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.

Hub Group and Grupo Aeroportuario del Sureste are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HUBG has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

HUBG currently has a forward P/E ratio of 20.13, while ASR has a forward P/E of 22.61. We also note that HUBG has a PEG ratio of 1.34. 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. ASR currently has a PEG ratio of 5.14.

Another notable valuation metric for HUBG is its P/B ratio of 2.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ASR has a P/B of 2.88.

These are just a few of the metrics contributing to HUBG's Value grade of A and ASR's Value grade of D.

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


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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>

Hub Group, Inc. (HUBG) - free report >>