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XPO or DSDVY: 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 XPO Logistics (XPO - Free Report) or DSV A/S UNS ADR (DSDVY - 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.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

XPO Logistics has a Zacks Rank of #1 (Strong Buy), while DSV A/S UNS ADR has a Zacks Rank of #3 (Hold) right now. This means that XPO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

XPO currently has a forward P/E ratio of 18.69, while DSDVY has a forward P/E of 26.74. We also note that XPO has a PEG ratio of 0.60. 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. DSDVY currently has a PEG ratio of 1.71.

Another notable valuation metric for XPO is its P/B ratio of 2.31. 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, DSDVY has a P/B of 7.67.

These metrics, and several others, help XPO earn a Value grade of A, while DSDVY has been given a Value grade of C.

XPO has seen stronger estimate revision activity and sports more attractive valuation metrics than DSDVY, so it seems like value investors will conclude that XPO is the superior option right now.


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