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GTN vs. NFLX: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of Gray Television (GTN) and 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Currently, Gray Television has a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that GTN likely has seen a stronger improvement to its earnings outlook than NFLX has recently. However, value investors will care about much more than just this.

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 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.

GTN currently has a forward P/E ratio of 5.10, while NFLX has a forward P/E of 83.74. We also note that GTN has a PEG ratio of 0.51. 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. NFLX currently has a PEG ratio of 2.79.

Another notable valuation metric for GTN is its P/B ratio of 0.90. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NFLX has a P/B of 24.92.

These metrics, and several others, help GTN earn a Value grade of A, while NFLX has been given a Value grade of D.

GTN sticks out from NFLX in both our Zacks Rank and Style Scores models, so value investors will likely feel that GTN is the better 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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