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SNDR vs. ZTO: Which Stock Is the Better Value Option?

Zacks Equity Research
·2-min read

Investors looking for stocks in the Transportation - Services sector might want to consider either Schneider National (SNDR) or ZTO Express Cayman Inc. (ZTO). 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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 Schneider National and ZTO Express Cayman Inc. have a Zacks Rank of # 2 (Buy) right now. 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 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.

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The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SNDR currently has a forward P/E ratio of 8.91, while ZTO has a forward P/E of 20.42. We also note that SNDR has a PEG ratio of 0.43. 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. ZTO currently has a PEG ratio of 1.10.

Another notable valuation metric for SNDR is its P/B ratio of 1.64. 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, ZTO has a P/B of 2.01.

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

Both SNDR and ZTO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SNDR is the superior value option right now.


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Schneider National, Inc. (SNDR) : Free Stock Analysis Report
 
ZTO Express Cayman Inc. (ZTO) : Free Stock Analysis Report
 
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Zacks Investment Research