Investors looking for stocks in the Transportation - Airline sector might want to consider either Deutsche Lufthansa AG (DLAKY) or Ryanair (RYAAY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 #1 (Strong Buy), while Ryanair has a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DLAKY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 6.60, while RYAAY has a forward P/E of 14.06. We also note that DLAKY has a PEG ratio of 0.59. 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. RYAAY currently has a PEG ratio of 1.92.

Another notable valuation metric for DLAKY is its P/B ratio of 0.72. 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 2.69.

These metrics, and several others, help DLAKY earn a Value grade of A, while RYAAY has been given a 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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Deutsche Lufthansa AG (DLAKY) : Free Stock Analysis Report

Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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