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OMAB or EXPD: Which Is the Better Value Stock Right Now?

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Investors with an interest in Transportation - Services stocks have likely encountered both Grupo Aeroportuario del Centro Norte (OMAB - Free Report) and Expeditors International (EXPD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 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.

Right now, Grupo Aeroportuario del Centro Norte is sporting a Zacks Rank of #2 (Buy), while Expeditors International has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OMAB is likely seeing its earnings outlook improve to a greater extent. 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.

OMAB currently has a forward P/E ratio of 10.72, while EXPD has a forward P/E of 24.64. We also note that OMAB has a PEG ratio of 3.49. 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. EXPD currently has a PEG ratio of 5.61.

Another notable valuation metric for OMAB is its P/B ratio of 5.87. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EXPD has a P/B of 8.

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

OMAB stands above EXPD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OMAB is the superior value option right now.


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Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) - free report >>

Expeditors International of Washington, Inc. (EXPD) - free report >>

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