Yahoo Finance TFII or PAC: Which Is the Better Value Stock Right Now?
Investors interested in Transportation - Services stocks are likely familiar with TFI International Inc. (TFII) and 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
TFI International Inc. has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Pacifico has a Zacks Rank of #3 (Hold) 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 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.
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.
TFII currently has a forward P/E ratio of 15, while PAC has a forward P/E of 23.58. We also note that TFII has a PEG ratio of 0.86. 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. PAC currently has a PEG ratio of 1.55.
Another notable valuation metric for TFII is its P/B ratio of 4.02. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PAC has a P/B of 10.19.
Based on these metrics and many more, TFII holds a Value grade of A, while PAC has a Value grade of C.
TFII has seen stronger estimate revision activity and sports more attractive valuation metrics than PAC, so it seems like value investors will conclude that TFII is the superior 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
TFI International Inc. (TFII) : Free Stock Analysis Report
Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) : Free Stock Analysis Report
