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TSQ or NFLX: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of Townsquare Media (TSQ - Free Report) and Netflix (NFLX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Townsquare Media has a Zacks Rank of #1 (Strong Buy), while Netflix has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that TSQ likely has seen a stronger improvement to its earnings outlook than NFLX has recently. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TSQ currently has a forward P/E ratio of 9.10, while NFLX has a forward P/E of 36.03. We also note that TSQ has a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NFLX currently has a PEG ratio of 1.48.
Another notable valuation metric for TSQ is its P/B ratio of 3.16. 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 8.32.
These metrics, and several others, help TSQ earn a Value grade of A, while NFLX has been given a Value grade of C.
TSQ has seen stronger estimate revision activity and sports more attractive valuation metrics than NFLX, so it seems like value investors will conclude that TSQ is the superior option right now.
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TSQ 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 Townsquare Media (TSQ - Free Report) and Netflix (NFLX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Townsquare Media has a Zacks Rank of #1 (Strong Buy), while Netflix has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that TSQ likely has seen a stronger improvement to its earnings outlook than NFLX has recently. But this is just one factor that value investors are interested in.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TSQ currently has a forward P/E ratio of 9.10, while NFLX has a forward P/E of 36.03. We also note that TSQ has a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NFLX currently has a PEG ratio of 1.48.
Another notable valuation metric for TSQ is its P/B ratio of 3.16. 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 8.32.
These metrics, and several others, help TSQ earn a Value grade of A, while NFLX has been given a Value grade of C.
TSQ has seen stronger estimate revision activity and sports more attractive valuation metrics than NFLX, so it seems like value investors will conclude that TSQ is the superior option right now.