FOXA vs. GAIA: Which Stock Should Value Investors Buy Now?

FOXA GAIA

Investors with an interest in Broadcast Radio and Television stocks have likely encountered both Fox (FOXA - Free Report) and Gaiam (GAIA - 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.

Fox and Gaiam are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that FOXA likely has seen a stronger improvement to its earnings outlook than GAIA has recently. But this is just one factor that value investors are interested in.

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.

FOXA currently has a forward P/E ratio of 13.47, while GAIA has a forward P/E of 207.40. We also note that FOXA has a PEG ratio of 7.48. 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. GAIA currently has a PEG ratio of 13.83.

Another notable valuation metric for FOXA is its P/B ratio of 1.64. 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, GAIA has a P/B of 2.71.

These are just a few of the metrics contributing to FOXA's Value grade of B and GAIA's Value grade of F.

FOXA stands above GAIA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FOXA is the superior value option right now.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>