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

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Investors with an interest in Transportation - Services stocks have likely encountered both DHL Group Sponsored ADR (DHLGY - Free Report) and Grupo Aeroportuario del Sureste (ASR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, DHL Group Sponsored ADR has a Zacks Rank of #2 (Buy), while Grupo Aeroportuario del Sureste 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 DHLGY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

DHLGY currently has a forward P/E ratio of 12.18, while ASR has a forward P/E of 14.48. We also note that DHLGY has a PEG ratio of 1.30. 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 8.37.

Another notable valuation metric for DHLGY is its P/B ratio of 1.92. 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, ASR has a P/B of 3.04.

These are just a few of the metrics contributing to DHLGY's Value grade of A and ASR's Value grade of D.

DHLGY 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 DHLGY is likely the superior value option right now.


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

DHL Group Sponsored ADR (DHLGY) - free report >>

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