DLAKY or SWRAY: Which Is the Better Value Stock Right Now?

DLAKY SWRAY

Investors interested in stocks from the Transportation - Airline sector have probably already heard of Deutsche Lufthansa AG (DLAKY - Free Report) and Swire Pacific (SWRAY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Deutsche Lufthansa AG and Swire Pacific are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that DLAKY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

DLAKY currently has a forward P/E ratio of 6.49, while SWRAY has a forward P/E of 8.70. 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. SWRAY currently has a PEG ratio of 0.57.

Another notable valuation metric for DLAKY is its P/B ratio of 0.66. 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, SWRAY has a P/B of 0.72.

These are just a few of the metrics contributing to DLAKY's Value grade of B and SWRAY's Value grade of C.

DLAKY stands above SWRAY 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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