DPSGY vs. PAC: Which Stock Is the Better Value Option?
Investors looking for stocks in the Transportation - Services sector might want to consider either Deutsche Post AG (DPSGY) or Grupo Aeroportuario del Pacifico (PAC). But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Deutsche Post AG has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Pacifico has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DPSGY has an improving earnings outlook. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
DPSGY currently has a forward P/E ratio of 14.72, while PAC has a forward P/E of 24.79. We also note that DPSGY has a PEG ratio of 1.55. 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. PAC currently has a PEG ratio of 2.08.
Another notable valuation metric for DPSGY is its P/B ratio of 4.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PAC has a P/B of 5.55.
Based on these metrics and many more, DPSGY holds a Value grade of A, while PAC has a Value grade of C.
DPSGY stands above PAC 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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Deutsche Post AG (DPSGY) : Free Stock Analysis Report
Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) : Free Stock Analysis Report
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