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TGNA or GAIA: Which Is the Better Value Stock Right Now?

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Investors interested in Broadcast Radio and Television stocks are likely familiar with TEGNA Inc. (TGNA - Free Report) and Gaiam (GAIA - 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.

Right now, TEGNA Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Gaiam has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TGNA is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

TGNA currently has a forward P/E ratio of 9.04, while GAIA has a forward P/E of 186.60. We also note that TGNA has a PEG ratio of 0.90. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GAIA currently has a PEG ratio of 12.44.

Another notable valuation metric for TGNA is its P/B ratio of 1.89. 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 2.44.

These metrics, and several others, help TGNA earn a Value grade of A, while GAIA has been given a Value grade of D.

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


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