Advertisement
Canada markets closed
  • S&P/TSX

    22,673.52
    +129.39 (+0.57%)
     
  • S&P 500

    5,615.35
    +30.81 (+0.55%)
     
  • DOW

    40,000.90
    +247.15 (+0.62%)
     
  • CAD/USD

    0.7336
    -0.0000 (-0.00%)
     
  • CRUDE OIL

    82.18
    -0.44 (-0.53%)
     
  • Bitcoin CAD

    81,171.62
    +2,243.38 (+2.84%)
     
  • CMC Crypto 200

    1,239.47
    +40.90 (+3.41%)
     
  • GOLD FUTURES

    2,416.00
    -5.90 (-0.24%)
     
  • RUSSELL 2000

    2,148.27
    +23.23 (+1.09%)
     
  • 10-Yr Bond

    4.1890
    -0.0040 (-0.10%)
     
  • NASDAQ

    18,398.45
    +115.04 (+0.63%)
     
  • VOLATILITY

    12.46
    -0.46 (-3.56%)
     
  • FTSE

    8,252.91
    +29.57 (+0.36%)
     
  • NIKKEI 225

    41,190.68
    -1,033.34 (-2.45%)
     
  • CAD/EUR

    0.6722
    -0.0025 (-0.37%)
     

GTN or NFLX: Which Is the Better Value Stock Right Now?

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 presents investors with the better value opportunity right now? Let's 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.

Gray Television and Netflix are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GTN is likely seeing its earnings outlook improve to a greater extent. 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.

ADVERTISEMENT

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 0.92, while NFLX has a forward P/E of 37.44. We also note that GTN has a PEG ratio of 0.09. 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 1.48.

Another notable valuation metric for GTN is its P/B ratio of 0.23. 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, NFLX has a P/B of 13.83.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Gray Television, Inc. (GTN) : Free Stock Analysis Report

Netflix, Inc. (NFLX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research