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DPSGY vs. CHRW: Which Stock Is the Better Value Option?

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 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Deutsche Post AG and C.H. Robinson Worldwide are holding 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 both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

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.

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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.

DPSGY currently has a forward P/E ratio of 15.91, while CHRW has a forward P/E of 18.39. We also note that DPSGY has a PEG ratio of 1.24. 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. CHRW currently has a PEG ratio of 2.04.

Another notable valuation metric for DPSGY is its P/B ratio of 4.19. 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, CHRW has a P/B of 6.58.

Based on these metrics and many more, DPSGY holds a Value grade of B, while CHRW has a 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.


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Deutsche Post AG (DPSGY) : Free Stock Analysis Report
 
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
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Zacks Investment Research