ZTO vs. DSDVY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Services sector have probably already heard of ZTO Express (Cayman) Inc. (ZTO) and DSV (DSDVY). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both ZTO Express (Cayman) Inc. and DSV have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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 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.
ZTO currently has a forward P/E ratio of 17.15, while DSDVY has a forward P/E of 21.56. We also note that ZTO has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DSDVY currently has a PEG ratio of 3.07.
Another notable valuation metric for ZTO is its P/B ratio of 2.02. 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, DSDVY has a P/B of 4.12.
Based on these metrics and many more, ZTO holds a Value grade of B, while DSDVY has a Value grade of C.
Both ZTO and DSDVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ZTO is the superior value option right now.
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ZTO Express (Cayman) Inc. (ZTO) : Free Stock Analysis Report
DSV (DSDVY) : Free Stock Analysis Report
