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DLAKY vs. SWRAY: Which Stock Is the Better Value Option?

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Investors with an interest in Transportation - Airline stocks have likely encountered both Deutsche Lufthansa AG (DLAKY - Free Report) and 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Deutsche Lufthansa AG and Swire Pacific have a Zacks Rank of # 2 (Buy) right now. 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. However, value investors will care about much more than just this.

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 7.86, while SWRAY has a forward P/E of 9.63. We also note that DLAKY has a PEG ratio of 0.25. 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. SWRAY currently has a PEG ratio of 0.70.

Another notable valuation metric for DLAKY is its P/B ratio of 0.71. 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.

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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