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SNDR vs. ZTO: Which Stock Should Value Investors Buy Now?

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Investors interested in Transportation - Services stocks are likely familiar with Schneider National (SNDR - Free Report) and ZTO Express Cayman Inc. (ZTO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Schneider National has a Zacks Rank of #1 (Strong Buy), while ZTO Express Cayman Inc. has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SNDR has an improving earnings outlook. 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.

SNDR currently has a forward P/E ratio of 12.09, while ZTO has a forward P/E of 33.37. We also note that SNDR has a PEG ratio of 0.67. 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 1.83.

Another notable valuation metric for SNDR is its P/B ratio of 2.02. 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 2.55.

These metrics, and several others, help SNDR earn a Value grade of B, while ZTO has been given a Value grade of D.

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


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ZTO Express (Cayman) Inc. (ZTO) - free report >>

Schneider National, Inc. (SNDR) - free report >>

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