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SNDR vs. ZTO: Which Stock Is the Better Value Option?

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Investors with an interest in Transportation - Services stocks have likely encountered both Schneider National (SNDR - Free Report) and ZTO Express Cayman Inc. (ZTO - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Schneider National has a Zacks Rank of #2 (Buy), while ZTO Express Cayman Inc. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SNDR likely has seen a stronger improvement to its earnings outlook than ZTO has recently. But this is only part of the picture 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

SNDR currently has a forward P/E ratio of 10.78, while ZTO has a forward P/E of 23.36. We also note that SNDR has a PEG ratio of 0.52. 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. ZTO currently has a PEG ratio of 1.29.

Another notable valuation metric for SNDR is its P/B ratio of 1.98. 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, ZTO has a P/B of 2.36.

These are just a few of the metrics contributing to SNDR's Value grade of A and ZTO's Value grade of C.

SNDR has seen stronger estimate revision activity and sports more attractive valuation metrics than ZTO, so it seems like value investors will conclude that SNDR is the superior option right now.


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

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

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