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TGNA vs. GAIA: Which Stock Should Value Investors Buy Now?
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Investors interested in Broadcast Radio and Television stocks are likely familiar with TEGNA Inc. (TGNA - Free Report) and Gaiam (GAIA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
TEGNA Inc. and Gaiam are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TGNA has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
TGNA currently has a forward P/E ratio of 10.56, while GAIA has a forward P/E of 100.42. We also note that TGNA has a PEG ratio of 1.06. 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. GAIA currently has a PEG ratio of 5.74.
Another notable valuation metric for TGNA is its P/B ratio of 2.08. 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, GAIA has a P/B of 3.11.
These metrics, and several others, help TGNA earn a Value grade of A, while GAIA has been given a Value grade of C.
TGNA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TGNA is likely the superior value option right now.
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TGNA vs. GAIA: Which Stock Should Value Investors Buy Now?
Investors interested in Broadcast Radio and Television stocks are likely familiar with TEGNA Inc. (TGNA - Free Report) and Gaiam (GAIA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
TEGNA Inc. and Gaiam are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TGNA has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
TGNA currently has a forward P/E ratio of 10.56, while GAIA has a forward P/E of 100.42. We also note that TGNA has a PEG ratio of 1.06. 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. GAIA currently has a PEG ratio of 5.74.
Another notable valuation metric for TGNA is its P/B ratio of 2.08. 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, GAIA has a P/B of 3.11.
These metrics, and several others, help TGNA earn a Value grade of A, while GAIA has been given a Value grade of C.
TGNA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TGNA is likely the superior value option right now.