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TRCO vs. SIRI: 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 Tribune Media and Sirius XM (SIRI - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Right now, Tribune Media is sporting a Zacks Rank of #1 (Strong Buy), while Sirius XM has a Zacks Rank of #4 (Sell). This means that TRCO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

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 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 19.50, while SIRI has a forward P/E of 28.14. We also note that TRCO has a PEG ratio of 2.10. 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. SIRI currently has a PEG ratio of 3.05.

Another notable valuation metric for TRCO is its P/B ratio of 1.13. 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, SIRI has a P/B of 180.40.

These metrics, and several others, help TRCO earn a Value grade of B, while SIRI has been given a 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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