Yahoo Finance TFII vs. PAC: Which Stock Is the Better Value Option?
Investors looking for stocks in the Transportation - Services sector might want to consider either TFI International Inc. (TFII) or Grupo Aeroportuario del Pacifico (PAC). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
TFI International Inc. and Grupo Aeroportuario del Pacifico are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TFII has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
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.
TFII currently has a forward P/E ratio of 12.37, while PAC has a forward P/E of 21.73. We also note that TFII has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAC currently has a PEG ratio of 1.73.
Another notable valuation metric for TFII is its P/B ratio of 3.37. 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, PAC has a P/B of 7.53.
Based on these metrics and many more, TFII holds a Value grade of B, while PAC has a Value grade of D.
TFII stands above PAC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TFII is the superior value option right now.
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TFI International Inc. (TFII) : Free Stock Analysis Report
Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) : Free Stock Analysis Report
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