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DSDVY vs. PAC: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Transportation - Services sector might want to consider either DSV (DSDVY - Free Report) or Grupo Aeroportuario del Pacifico (PAC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, DSV is sporting a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Pacifico 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 DSDVY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.

DSDVY currently has a forward P/E ratio of 13.14, while PAC has a forward P/E of 20.19. We also note that DSDVY has a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAC currently has a PEG ratio of 1.84.

Another notable valuation metric for DSDVY is its P/B ratio of 2.87. 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 8.85.

Based on these metrics and many more, DSDVY holds a Value grade of B, while PAC has a Value grade of D.

DSDVY has seen stronger estimate revision activity and sports more attractive valuation metrics than PAC, so it seems like value investors will conclude that DSDVY is the superior option right now.


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Grupo Aeroportuario Del Pacifico, S.A. de C.V. (PAC) - free report >>

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