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CHRW or EXPD: Which Is the Better Value Stock Right Now?
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Investors with an interest in Transportation - Services stocks have likely encountered both C.H. Robinson Worldwide (CHRW - Free Report) and Expeditors International (EXPD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, C.H. Robinson Worldwide is sporting a Zacks Rank of #2 (Buy), while Expeditors International has a Zacks Rank of #3 (Hold). This means that CHRW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CHRW currently has a forward P/E ratio of 20.19, while EXPD has a forward P/E of 21.32. We also note that CHRW has a PEG ratio of 1.13. 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. EXPD currently has a PEG ratio of 3.81.
Another notable valuation metric for CHRW is its P/B ratio of 6.68. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EXPD has a P/B of 6.69.
Based on these metrics and many more, CHRW holds a Value grade of B, while EXPD has a Value grade of D.
CHRW stands above EXPD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHRW is the superior value option right now.
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CHRW or EXPD: Which Is the Better Value Stock Right Now?
Investors with an interest in Transportation - Services stocks have likely encountered both C.H. Robinson Worldwide (CHRW - Free Report) and Expeditors International (EXPD - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, C.H. Robinson Worldwide is sporting a Zacks Rank of #2 (Buy), while Expeditors International has a Zacks Rank of #3 (Hold). This means that CHRW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CHRW currently has a forward P/E ratio of 20.19, while EXPD has a forward P/E of 21.32. We also note that CHRW has a PEG ratio of 1.13. 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. EXPD currently has a PEG ratio of 3.81.
Another notable valuation metric for CHRW is its P/B ratio of 6.68. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EXPD has a P/B of 6.69.
Based on these metrics and many more, CHRW holds a Value grade of B, while EXPD has a Value grade of D.
CHRW stands above EXPD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHRW is the superior value option right now.