AL vs. WAB: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Transportation - Equipment and Leasing sector should consider Air Lease (AL) and Westinghouse Air Brake Technologies (WAB) for potential value opportunities [1] Group 1: Zacks Rank and Value Assessment - Both Air Lease and Westinghouse Air Brake Technologies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions [3] - The Zacks Rank system emphasizes companies with improving earnings outlooks, which is a positive sign for investors [3] Group 2: Valuation Metrics - Air Lease has a forward P/E ratio of 10.25, while Westinghouse Air Brake Technologies has a forward P/E of 23.37, suggesting that AL may be undervalued compared to WAB [5] - The PEG ratio for Air Lease is 0.59, indicating a favorable valuation relative to its expected earnings growth, whereas WAB has a PEG ratio of 1.51 [5] - Air Lease's P/B ratio is 0.82, compared to WAB's P/B of 3.35, further supporting the argument that AL is a more attractive value option [6] Group 3: Overall Value Grades - Based on various valuation metrics, Air Lease holds a Value grade of A, while Westinghouse Air Brake Technologies has a Value grade of D, indicating that AL is the superior value option at this time [6]