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DPSGY vs. OMAB: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Transportation - Services sector have probably already heard of Deutsche Post AG and Grupo Aeroportuario del Centro Norte (OMAB - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Deutsche Post AG and Grupo Aeroportuario del Centro Norte are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that DPSGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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.

DPSGY currently has a forward P/E ratio of 15.40, while OMAB has a forward P/E of 22.76. We also note that DPSGY has a PEG ratio of 1.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OMAB currently has a PEG ratio of 7.59.

Another notable valuation metric for DPSGY is its P/B ratio of 4.26. 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, OMAB has a P/B of 4.35.

Based on these metrics and many more, DPSGY holds a Value grade of A, while OMAB has a Value grade of D.

DPSGY 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 DPSGY is likely the superior value option right now.


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