Yahoo Finance 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Gray Television and Netflix are holding a Zacks Rank of # 2 (Buy). 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. However, value investors will care about much more than just this.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GTN currently has a forward P/E ratio of 1.39, while NFLX has a forward P/E of 30.87. We also note that GTN has a PEG ratio of 0.14. 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 1.37.
Another notable valuation metric for GTN is its P/B ratio of 0.28. 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 11.28.
Based on these metrics and many more, GTN holds a Value grade of A, while NFLX has a 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
