雅虎香港財經 DLAKY vs. LUV: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Airline sector have probably already heard of Deutsche Lufthansa AG (DLAKY) and Southwest Airlines (LUV). 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Deutsche Lufthansa AG has a Zacks Rank of #2 (Buy), while Southwest Airlines has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that DLAKY likely has seen a stronger improvement to its earnings outlook than LUV has recently. But this is just one piece of the puzzle for value investors.
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.
DLAKY currently has a forward P/E ratio of 4.81, while LUV has a forward P/E of 27.56. We also note that DLAKY has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LUV currently has a PEG ratio of 1.73.
Another notable valuation metric for DLAKY is its P/B ratio of 0.65. 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, LUV has a P/B of 1.66.
Based on these metrics and many more, DLAKY holds a Value grade of A, while LUV has a Value grade of C.
DLAKY sticks out from LUV in both our Zacks Rank and Style Scores models, so value investors will likely feel that DLAKY is the better option right now.
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Deutsche Lufthansa AG (DLAKY) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
