MATX vs. PAC: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Services sector have probably already heard of Matson (MATX) and Grupo Aeroportuario del Pacifico (PAC). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Matson and Grupo Aeroportuario del Pacifico are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that MATX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
MATX currently has a forward P/E ratio of 15.31, while PAC has a forward P/E of 21.60. We also note that MATX has a PEG ratio of 3.06. 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. PAC currently has a PEG ratio of 3.66.
Another notable valuation metric for MATX is its P/B ratio of 2.20. 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, PAC has a P/B of 5.47.
Based on these metrics and many more, MATX holds a Value grade of A, while PAC has a Value grade of D.
MATX sticks out from PAC in both our Zacks Rank and Style Scores models, so value investors will likely feel that MATX is the better option right now.
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Matson, Inc. (MATX) : Free Stock Analysis Report
Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) : Free Stock Analysis Report
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