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FOXA vs. NFLX: Which Stock Is the Better Value Option?

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Investors interested in Broadcast Radio and Television stocks are likely familiar with Fox (FOXA - Free Report) and Netflix (NFLX - Free Report) . 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.

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.

Fox and Netflix are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.

FOXA currently has a forward P/E ratio of 13.26, while NFLX has a forward P/E of 51.58. We also note that FOXA has a PEG ratio of 1.52. 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 1.68.

Another notable valuation metric for FOXA is its P/B ratio of 1.93. 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 18.64.

These are just a few of the metrics contributing to FOXA's Value grade of A and NFLX's Value grade of F.

Both FOXA and NFLX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FOXA is the superior value option right now.


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