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SNDR or OMAB: Which Is the Better Value Stock Right Now?

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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 companies is the best option for those looking for undervalued stocks? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Schneider National and Grupo Aeroportuario del Centro Norte are both sporting a Zacks Rank of # 1 (Strong 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 factor that value investors are interested in.

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 14.47, while OMAB has a forward P/E of 18.76. We also note that SNDR has a PEG ratio of 1.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. OMAB currently has a PEG ratio of 6.25.

Another notable valuation metric for SNDR is its P/B ratio of 1.96. 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, OMAB has a P/B of 6.31.

Based on these metrics and many more, SNDR holds a Value grade of A, while OMAB has a 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.


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Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) - free report >>

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

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