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Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) - free report >>
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Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) - free report >>
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DPSGY vs. OMAB: Which Stock Should Value Investors Buy Now?
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 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Deutsche Post AG has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Centro Norte has a Zacks Rank of #3 (Hold) 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. But this is only part of the picture for value investors.
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.
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 14.67, while OMAB has a forward P/E of 23.73. We also note that DPSGY has a PEG ratio of 1.54. 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 7.91.
Another notable valuation metric for DPSGY is its P/B ratio of 4.52. 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 4.57.
These are just a few of the metrics contributing to DPSGY's Value grade of A and OMAB's 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.