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DSDVY or ASR: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Transportation - Services sector have probably already heard of DSV (DSDVY - Free Report) and Grupo Aeroportuario del Sureste (ASR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

DSV has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Sureste has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DSDVY likely has seen a stronger improvement to its earnings outlook than ASR has recently. But this is just one piece of the puzzle 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.

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 12.47, while ASR has a forward P/E of 14.53. We also note that DSDVY has a PEG ratio of 1.40. 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. ASR currently has a PEG ratio of 3.30.

Another notable valuation metric for DSDVY is its P/B ratio of 2.67. 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, ASR has a P/B of 2.81.

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

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


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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) - free report >>

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