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ECHO vs. ZTO: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Transportation - Services sector have probably already heard of Echo Global Logistics and ZTO Express Cayman Inc. (ZTO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Echo Global Logistics has a Zacks Rank of #2 (Buy), while ZTO Express Cayman Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ECHO is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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.
ECHO currently has a forward P/E ratio of 28.72, while ZTO has a forward P/E of 36.32. We also note that ECHO has a PEG ratio of 1.64. 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. ZTO currently has a PEG ratio of 2.34.
Another notable valuation metric for ECHO is its P/B ratio of 1.77. 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, ZTO has a P/B of 4.05.
These metrics, and several others, help ECHO earn a Value grade of A, while ZTO has been given a Value grade of D.
ECHO stands above ZTO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ECHO is the superior value option right now.
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ECHO vs. ZTO: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Services sector have probably already heard of Echo Global Logistics and ZTO Express Cayman Inc. (ZTO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Echo Global Logistics has a Zacks Rank of #2 (Buy), while ZTO Express Cayman Inc. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ECHO is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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.
ECHO currently has a forward P/E ratio of 28.72, while ZTO has a forward P/E of 36.32. We also note that ECHO has a PEG ratio of 1.64. 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. ZTO currently has a PEG ratio of 2.34.
Another notable valuation metric for ECHO is its P/B ratio of 1.77. 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, ZTO has a P/B of 4.05.
These metrics, and several others, help ECHO earn a Value grade of A, while ZTO has been given a Value grade of D.
ECHO stands above ZTO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ECHO is the superior value option right now.