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TFII vs. PAC: Which Stock Should Value Investors Buy Now?

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Investors interested in Transportation - Services stocks are likely familiar with TFI International Inc. (TFII - Free Report) and Grupo Aeroportuario del Pacifico (PAC - Free Report) . 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 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.

TFI International Inc. has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Pacifico has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TFII has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

TFII currently has a forward P/E ratio of 17.79, while PAC has a forward P/E of 37.17. We also note that TFII has a PEG ratio of 3.13. 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. PAC currently has a PEG ratio of 7.76.

Another notable valuation metric for TFII is its P/B ratio of 2.77. 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, PAC has a P/B of 4.64.

Based on these metrics and many more, TFII holds a Value grade of B, while PAC has a Value grade of D.

TFII sticks out from PAC in both our Zacks Rank and Style Scores models, so value investors will likely feel that TFII is the better option right now.


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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) - free report >>

TFI International Inc. (TFII) - free report >>

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