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AMCX vs. NFLX: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of AMC Networks (AMCX - 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.
Right now, AMC Networks is sporting a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMCX has an improving earnings outlook. 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.
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.
AMCX currently has a forward P/E ratio of 8.28, while NFLX has a forward P/E of 136.10. We also note that AMCX has a PEG ratio of 1.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NFLX currently has a PEG ratio of 5.10.
Another notable valuation metric for AMCX is its P/B ratio of 15.55. 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 42.37.
These are just a few of the metrics contributing to AMCX's Value grade of A and NFLX's Value grade of F.
AMCX has seen stronger estimate revision activity and sports more attractive valuation metrics than NFLX, so it seems like value investors will conclude that AMCX is the superior option right now.
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AMCX vs. NFLX: Which Stock Is the Better Value Option?
Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of AMC Networks (AMCX - 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.
Right now, AMC Networks is sporting a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AMCX has an improving earnings outlook. 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.
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.
AMCX currently has a forward P/E ratio of 8.28, while NFLX has a forward P/E of 136.10. We also note that AMCX has a PEG ratio of 1.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NFLX currently has a PEG ratio of 5.10.
Another notable valuation metric for AMCX is its P/B ratio of 15.55. 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 42.37.
These are just a few of the metrics contributing to AMCX's Value grade of A and NFLX's Value grade of F.
AMCX has seen stronger estimate revision activity and sports more attractive valuation metrics than NFLX, so it seems like value investors will conclude that AMCX is the superior option right now.