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

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Investors looking for stocks in the Transportation - Airline sector might want to consider either Deutsche Lufthansa AG (DLAKY - Free Report) or Swire Pacific (SWRAY - 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.

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 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.

Currently, both Deutsche Lufthansa AG and Swire Pacific are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

DLAKY currently has a forward P/E ratio of 8.14, while SWRAY has a forward P/E of 10.66. We also note that DLAKY has a PEG ratio of 0.26. 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. SWRAY currently has a PEG ratio of 0.77.

Another notable valuation metric for DLAKY is its P/B ratio of 0.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SWRAY has a P/B of 0.80.

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

Both DLAKY and SWRAY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DLAKY is the superior value option right now.


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Deutsche Lufthansa AG (DLAKY) - free report >>

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