Yahoo Finance ASR vs. OMAB: Which Stock Is the Better Value Option?
Investors looking for stocks in the Transportation - Services sector might want to consider either Grupo Aeroportuario del Sureste (ASR) or Grupo Aeroportuario del Centro Norte (OMAB). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Grupo Aeroportuario del Sureste and Grupo Aeroportuario del Centro Norte are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ASR is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
ASR currently has a forward P/E ratio of 18.04, while OMAB has a forward P/E of 22.89. We also note that ASR has a PEG ratio of 4.10. 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. OMAB currently has a PEG ratio of 7.63.
Another notable valuation metric for ASR is its P/B ratio of 3.77. 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, OMAB has a P/B of 8.96.
These metrics, and several others, help ASR earn a Value grade of B, while OMAB has been given a Value grade of D.
ASR 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 ASR is likely the superior value option right now.
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Grupo Aeroportuario del Sureste, S.A. de C.V. (ASR) : Free Stock Analysis Report
Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (OMAB) : Free Stock Analysis Report
