DPSGY vs. CHRW: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Transportation - Services sector have probably already heard of Deutsche Post AG (DPSGY) and C.H. Robinson Worldwide (CHRW). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Deutsche Post AG and C.H. Robinson Worldwide are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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 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.
DPSGY currently has a forward P/E ratio of 16.95, while CHRW has a forward P/E of 19.47. We also note that DPSGY has a PEG ratio of 1.33. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CHRW currently has a PEG ratio of 2.16.
Another notable valuation metric for DPSGY is its P/B ratio of 4.08. 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, CHRW has a P/B of 6.80.
Based on these metrics and many more, DPSGY holds a Value grade of B, while CHRW has a Value grade of D.
Both DPSGY and CHRW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DPSGY is the superior value option right now.
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Deutsche Post AG (DPSGY) : Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
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