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TRCO or SIRI: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either Tribune Media or Sirius XM (SIRI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Tribune Media has a Zacks Rank of #2 (Buy), while Sirius XM has a Zacks Rank of #3 (Hold). This means that TRCO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

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.

TRCO currently has a forward P/E ratio of 22.81, while SIRI has a forward P/E of 23.95. We also note that TRCO has a PEG ratio of 2.45. 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. SIRI currently has a PEG ratio of 2.60.

Another notable valuation metric for TRCO is its P/B ratio of 1.12. 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, SIRI has a P/B of 157.66.

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

TRCO has seen stronger estimate revision activity and sports more attractive valuation metrics than SIRI, so it seems like value investors will conclude that TRCO is the superior option right now.


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