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

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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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Deutsche Post AG is sporting a Zacks Rank of #1 (Strong Buy), while C.H. Robinson Worldwide has a Zacks Rank of #2 (Buy). This means that DPSGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 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 12.38, while CHRW has a forward P/E of 14.96. We also note that DPSGY has a PEG ratio of 0.98. 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. CHRW currently has a PEG ratio of 1.66.

Another notable valuation metric for DPSGY is its P/B ratio of 3.51. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CHRW has a P/B of 6.28.

These metrics, and several others, help DPSGY earn a Value grade of A, while CHRW has been given a Value grade of D.

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


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