Yahoo Finance GTN vs. NFLX: Which Stock Is the Better Value Option?
Investors interested in Broadcast Radio and Television stocks are likely familiar with 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Both Gray Television and Netflix have a Zacks Rank of # 1 (Strong 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. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 1.19, while NFLX has a forward P/E of 35.03. We also note that GTN has a PEG ratio of 0.12. 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 1.39.
Another notable valuation metric for GTN is its P/B ratio of 0.30. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NFLX has a P/B of 12.94.
These are just a few of the metrics contributing to GTN's Value grade of A and NFLX's Value grade of F.
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
