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GTN or TV: Which Is the Better Value Stock Right Now?

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Investors with an interest in Broadcast Radio and Television stocks have likely encountered both Gray Television (GTN - Free Report) and Grupo Televisa (TV - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Gray Television has a Zacks Rank of #2 (Buy), while Grupo Televisa has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GTN likely has seen a stronger improvement to its earnings outlook than TV has recently. But this is only part of the picture for value investors.

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.

GTN currently has a forward P/E ratio of 8.59, while TV has a forward P/E of 45.45. We also note that GTN has a PEG ratio of 1.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TV currently has a PEG ratio of 1.60.

Another notable valuation metric for GTN is its P/B ratio of 1.42. 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, TV has a P/B of 2.

These are just a few of the metrics contributing to GTN's Value grade of B and TV's Value grade of D.

GTN sticks out from TV in both our Zacks Rank and Style Scores models, so value investors will likely feel that GTN is the better option right now.


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Grupo Televisa S.A. (TV) - free report >>

Gray Television, Inc. (GTN) - free report >>