Investors looking for stocks in the Transportation - Services sector might want to consider either Schneider National (SNDR - Free Report) or Grupo Aeroportuario del Centro Norte (OMAB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Schneider National and Grupo Aeroportuario del Centro Norte have a Zacks Rank of # 2 (Buy) right now. 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 also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
SNDR currently has a forward P/E ratio of 16.59, while OMAB has a forward P/E of 21.17. We also note that SNDR has a PEG ratio of 1.28. 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. OMAB currently has a PEG ratio of 7.06.
Another notable valuation metric for SNDR is its P/B ratio of 2.24. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OMAB has a P/B of 6.93.
These are just a few of the metrics contributing to SNDR's Value grade of A and OMAB's Value grade of D.
Both SNDR and OMAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SNDR is the superior value option right now.