We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ALGT vs. RYAAY: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Transportation - Airline stocks are likely familiar with Allegiant Travel (ALGT - Free Report) and 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Allegiant Travel and Ryanair are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that ALGT likely has seen a stronger improvement to its earnings outlook than RYAAY has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
ALGT currently has a forward P/E ratio of 13.80, while RYAAY has a forward P/E of 15.18. We also note that ALGT has a PEG ratio of 0.27. 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. RYAAY currently has a PEG ratio of 1.89.
Another notable valuation metric for ALGT is its P/B ratio of 1.74. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RYAAY has a P/B of 2.83.
These metrics, and several others, help ALGT earn a Value grade of A, while RYAAY has been given a Value grade of C.
ALGT stands above RYAAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ALGT is the superior value option right now.
View the Zacks #1 Rank List
Image: Bigstock
ALGT vs. RYAAY: Which Stock Is the Better Value Option?
Investors interested in Transportation - Airline stocks are likely familiar with Allegiant Travel (ALGT - Free Report) and 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Allegiant Travel and Ryanair are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that ALGT likely has seen a stronger improvement to its earnings outlook than RYAAY has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
ALGT currently has a forward P/E ratio of 13.80, while RYAAY has a forward P/E of 15.18. We also note that ALGT has a PEG ratio of 0.27. 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. RYAAY currently has a PEG ratio of 1.89.
Another notable valuation metric for ALGT is its P/B ratio of 1.74. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RYAAY has a P/B of 2.83.
These metrics, and several others, help ALGT earn a Value grade of A, while RYAAY has been given a Value grade of C.
ALGT stands above RYAAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ALGT is the superior value option right now.