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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>
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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>
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ECHO vs. ASR: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Services sector have probably already heard of Echo Global Logistics and Grupo Aeroportuario del Sureste (ASR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, Echo Global Logistics is sporting a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Sureste has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ECHO has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ECHO currently has a forward P/E ratio of 13.09, while ASR has a forward P/E of 16.77. We also note that ECHO has a PEG ratio of 0.75. 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 3.81.
Another notable valuation metric for ECHO is its P/B ratio of 1.71. 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 2.06.
Based on these metrics and many more, ECHO holds a Value grade of A, while ASR has a Value grade of C.
ECHO sticks out from ASR in both our Zacks Rank and Style Scores models, so value investors will likely feel that ECHO is the better option right now.