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DBOEY vs. OTCM: Which Stock Is the Better Value Option?

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Investors interested in Securities and Exchanges stocks are likely familiar with Deutsche Boerse AG (DBOEY - Free Report) and OTC Markets Group Inc. (OTCM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Deutsche Boerse AG has a Zacks Rank of #2 (Buy), while OTC Markets Group Inc. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DBOEY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 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.

DBOEY currently has a forward P/E ratio of 19.57, while OTCM has a forward P/E of 23.44. We also note that DBOEY has a PEG ratio of 2.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OTCM currently has a PEG ratio of 2.60.

Another notable valuation metric for DBOEY is its P/B ratio of 3.89. 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, OTCM has a P/B of 15.13.

Based on these metrics and many more, DBOEY holds a Value grade of B, while OTCM has a Value grade of D.

DBOEY stands above OTCM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DBOEY is the superior value option right now.


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