GTN or NFLX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either Gray Television (GTN) or Netflix (NFLX). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Gray Television and Netflix have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GTN currently has a forward P/E ratio of 4.94, while NFLX has a forward P/E of 70.56. We also note that GTN has a PEG ratio of 0.49. 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. NFLX currently has a PEG ratio of 2.35.
Another notable valuation metric for GTN is its P/B ratio of 0.82. 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, NFLX has a P/B of 23.75.
These are just a few of the metrics contributing to GTN's Value grade of A and NFLX's Value grade of D.
Both GTN and NFLX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GTN is the superior value option right now.
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Gray Television, Inc. (GTN) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
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