Investors interested in Transportation - Airline stocks are likely familiar with Deutsche Lufthansa AG (DLAKY) and Ryanair (RYAAY). 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Deutsche Lufthansa AG and Ryanair are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.

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 7.02, while RYAAY has a forward P/E of 15.03. We also note that DLAKY has a PEG ratio of 0.63. 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 2.05.

Another notable valuation metric for DLAKY is its P/B ratio of 0.85. 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, RYAAY has a P/B of 2.88.

Based on these metrics and many more, DLAKY holds a Value grade of A, while RYAAY has a Value grade of C.

Both DLAKY and RYAAY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that DLAKY is 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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