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ECHO or ZTO: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Transportation - Services sector might want to consider either Echo Global Logistics or 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks 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. Investors should feel comfortable knowing that ECHO likely has seen a stronger improvement to its earnings outlook than ZTO has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ECHO currently has a forward P/E ratio of 14.76, while ZTO has a forward P/E of 33.07. We also note that ECHO has a PEG ratio of 0.84. 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. ZTO currently has a PEG ratio of 2.61.
Another notable valuation metric for ECHO is its P/B ratio of 2.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZTO has a P/B of 2.63.
These are just a few of the metrics contributing to ECHO's Value grade of B and ZTO's Value grade of C.
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 or ZTO: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Transportation - Services sector might want to consider either Echo Global Logistics or 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks 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. Investors should feel comfortable knowing that ECHO likely has seen a stronger improvement to its earnings outlook than ZTO has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ECHO currently has a forward P/E ratio of 14.76, while ZTO has a forward P/E of 33.07. We also note that ECHO has a PEG ratio of 0.84. 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. ZTO currently has a PEG ratio of 2.61.
Another notable valuation metric for ECHO is its P/B ratio of 2.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ZTO has a P/B of 2.63.
These are just a few of the metrics contributing to ECHO's Value grade of B and ZTO's Value grade of C.
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.