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DUFRY or ABNB: Which Is the Better Value Stock Right Now?

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Investors with an interest in Leisure and Recreation Services stocks have likely encountered both Avolta AG - Unsponsored ADR (DUFRY - Free Report) and Airbnb, Inc. (ABNB - 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.

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 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.

Right now, Avolta AG - Unsponsored ADR is sporting a Zacks Rank of #2 (Buy), while Airbnb, Inc. has a Zacks Rank of #3 (Hold). This means that DUFRY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.

DUFRY currently has a forward P/E ratio of 11.80, while ABNB has a forward P/E of 26.13. We also note that DUFRY has a PEG ratio of 1.28. 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. ABNB currently has a PEG ratio of 1.57.

Another notable valuation metric for DUFRY is its P/B ratio of 3.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ABNB has a P/B of 9.42.

These metrics, and several others, help DUFRY earn a Value grade of A, while ABNB has been given a Value grade of C.

DUFRY 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 DUFRY is likely the superior value option right now.

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