DLAKY or RYAAY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Transportation - Airline sector might want to consider either Deutsche Lufthansa AG (DLAKY) or Ryanair (RYAAY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Deutsche Lufthansa AG has a Zacks Rank of #2 (Buy), while Ryanair has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DLAKY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
DLAKY currently has a forward P/E ratio of 4.60, while RYAAY has a forward P/E of 14.98. We also note that DLAKY has a PEG ratio of 0.20. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RYAAY currently has a PEG ratio of 1.
Another notable valuation metric for DLAKY is its P/B ratio of 0.83. 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, RYAAY has a P/B of 3.72.
These are just a few of the metrics contributing to DLAKY's Value grade of A and RYAAY's Value grade of C.
DLAKY stands above RYAAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DLAKY is the superior value option right now.
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Deutsche Lufthansa AG (DLAKY) : Free Stock Analysis Report
Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
