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DPSGY or CHRW: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Transportation - Services sector have probably already heard of Deutsche Post AG and C.H. Robinson Worldwide (CHRW - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Deutsche Post AG and C.H. Robinson Worldwide 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 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.

DPSGY currently has a forward P/E ratio of 16.76, while CHRW has a forward P/E of 18.68. We also note that DPSGY has a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CHRW currently has a PEG ratio of 2.08.

Another notable valuation metric for DPSGY is its P/B ratio of 4.15. 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, CHRW has a P/B of 6.64.

These are just a few of the metrics contributing to DPSGY's Value grade of B and CHRW's Value grade of C.

Both DPSGY and CHRW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DPSGY is the superior value option right now.


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