Advertisement
UK markets close in 5 hours 18 minutes

  • FTSE 100

    8,351.85
    -2.20 (-0.03%)
     

  • FTSE 250

    20,469.77
    -22.22 (-0.11%)
     

  • AIM

    782.00
    +2.17 (+0.28%)
     

  • GBP/EUR

    1.1633
    +0.0010 (+0.09%)
     

  • GBP/USD

    1.2495
    -0.0002 (-0.02%)
     

  • Bitcoin GBP

    48,920.68
    -947.66 (-1.90%)
     

  • CMC Crypto 200

    1,318.70
    +18.61 (+1.43%)
     

  • S&P 500

    5,187.67
    -0.03 (-0.00%)
     

  • DOW

    39,056.39
    +172.13 (+0.44%)
     

  • CRUDE OIL

    79.51
    +0.52 (+0.66%)
     

  • GOLD FUTURES

    2,314.70
    -7.60 (-0.33%)
     

  • NIKKEI 225

    38,073.98
    -128.39 (-0.34%)
     

  • HANG SENG

    18,537.81
    +223.95 (+1.22%)
     

  • DAX

    18,542.65
    +44.27 (+0.24%)
     

  • CAC 40

    8,120.94
    -10.47 (-0.13%)
     
Money:

Bank of England expected to hold interest rates

Investors predict MPC will maintain interest at 5.25% when it meets on Thursday.

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

Zacks Equity Research
·2-min read

Investors with an interest in Transportation - Services stocks have likely encountered both Deutsche Post AG (DPSGY) and C.H. Robinson Worldwide (CHRW). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Both Deutsche Post AG and C.H. Robinson Worldwide have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.

ADVERTISEMENT

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 13.37, while CHRW has a forward P/E of 15.39. We also note that DPSGY has a PEG ratio of 1.05. 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 1.71.

Another notable valuation metric for DPSGY is its P/B ratio of 3.98. 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, CHRW has a P/B of 6.43.

These are just a few of the metrics contributing to DPSGY's Value grade of A 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.


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
 
Deutsche Post AG (DPSGY) : Free Stock Analysis Report
 
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research