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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) - free report >>
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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) - free report >>
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MATX vs. PAC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Services sector have probably already heard of Matson (MATX - Free Report) and Grupo Aeroportuario del Pacifico (PAC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Matson has a Zacks Rank of #1 (Strong Buy), while Grupo Aeroportuario del Pacifico has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MATX likely has seen a stronger improvement to its earnings outlook than PAC has recently. However, value investors will care about much more than just this.
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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MATX currently has a forward P/E ratio of 15.96, while PAC has a forward P/E of 23.40. We also note that MATX has a PEG ratio of 3.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PAC currently has a PEG ratio of 3.97.
Another notable valuation metric for MATX is its P/B ratio of 2.30. 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, PAC has a P/B of 5.91.
These are just a few of the metrics contributing to MATX's Value grade of B and PAC's Value grade of D.
MATX sticks out from PAC in both our Zacks Rank and Style Scores models, so value investors will likely feel that MATX is the better option right now.