CHRW vs. OMAB: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Transportation - Services sector have probably already heard of C.H. Robinson Worldwide (CHRW) and Grupo Aeroportuario del Centro Norte (OMAB). 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.
C.H. Robinson Worldwide has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Centro Norte has a Zacks Rank of #4 (Sell) right now. This means that CHRW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
CHRW currently has a forward P/E ratio of 13.06, while OMAB has a forward P/E of 13.94. We also note that CHRW has a PEG ratio of 1.45. 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. OMAB currently has a PEG ratio of 4.65.
Another notable valuation metric for CHRW is its P/B ratio of 6.91. 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, OMAB has a P/B of 7.09.
These metrics, and several others, help CHRW earn a Value grade of B, while OMAB has been given a Value grade of D.
CHRW stands above OMAB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CHRW is the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
