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DLAKY or RYAAY: 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 Ryanair (RYAAY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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.

Deutsche Lufthansa AG has a Zacks Rank of #2 (Buy), while Ryanair has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DLAKY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

DLAKY currently has a forward P/E ratio of 4.59, while RYAAY has a forward P/E of 15.30. We also note that DLAKY has a PEG ratio of 0.20. 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. RYAAY currently has a PEG ratio of 0.91.

Another notable valuation metric for DLAKY is its P/B ratio of 0.80. 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, RYAAY has a P/B of 3.82.

These are just a few of the metrics contributing to DLAKY's Value grade of A and RYAAY's Value grade of C.

DLAKY 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 DLAKY is likely the superior value option right now.


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