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

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Investors with an interest in Transportation - Services stocks have likely encountered both Hub Group (HUBG - Free Report) and Grupo Aeroportuario del Sureste (ASR - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Hub Group has a Zacks Rank of #1 (Strong Buy), while Grupo Aeroportuario del Sureste has a Zacks Rank of #4 (Sell). This means that HUBG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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 18.86, while ASR has a forward P/E of 22.32. We also note that HUBG has a PEG ratio of 1.26. 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. ASR currently has a PEG ratio of 5.07.

Another notable valuation metric for HUBG is its P/B ratio of 2.17. 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 2.84.

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

HUBG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HUBG is likely the superior value 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 >>