DLAKY vs. RYAAY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Airline sector have probably already heard of Deutsche Lufthansa AG (DLAKY) and Ryanair (RYAAY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify 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. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
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.
DLAKY currently has a forward P/E ratio of 4.93, while RYAAY has a forward P/E of 15.32. We also note that DLAKY has a PEG ratio of 0.22. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RYAAY currently has a PEG ratio of 1.02.
Another notable valuation metric for DLAKY is its P/B ratio of 0.89. 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, RYAAY has a P/B of 3.70.
These are just a few of the metrics contributing to DLAKY's Value grade of A and RYAAY's Value grade of C.
DLAKY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that DLAKY is likely 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
