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AMCX or NFLX: Which Is the Better Value Stock Right Now?
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Investors interested in Broadcast Radio and Television stocks are likely familiar with AMC Networks (AMCX - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AMCX currently has a forward P/E ratio of 6.69, while NFLX has a forward P/E of 89.28. We also note that AMCX has a PEG ratio of 0.93. 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 2.98.
Another notable valuation metric for AMCX is its P/B ratio of 9.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NFLX has a P/B of 30.
These are just a few of the metrics contributing to AMCX's Value grade of A and NFLX's Value grade of F.
AMCX stands above NFLX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMCX is the superior value option right now.
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AMCX or NFLX: Which Is the Better Value Stock Right Now?
Investors interested in Broadcast Radio and Television stocks are likely familiar with AMC Networks (AMCX - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AMCX currently has a forward P/E ratio of 6.69, while NFLX has a forward P/E of 89.28. We also note that AMCX has a PEG ratio of 0.93. 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 2.98.
Another notable valuation metric for AMCX is its P/B ratio of 9.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NFLX has a P/B of 30.
These are just a few of the metrics contributing to AMCX's Value grade of A and NFLX's Value grade of F.
AMCX stands above NFLX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMCX is the superior value option right now.