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TGNA vs. GAIA: Which Stock Should Value Investors Buy 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 is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
TEGNA Inc. and Gaiam are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that TGNA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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 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.
TGNA currently has a forward P/E ratio of 10.28, while GAIA has a forward P/E of 196.40. We also note that TGNA has a PEG ratio of 1.03. 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 13.09.
Another notable valuation metric for TGNA is its P/B ratio of 2.15. 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 2.56.
These are just a few of the metrics contributing to TGNA's Value grade of A and GAIA's Value grade of D.
TGNA stands above GAIA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TGNA is the superior value option right now.
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TGNA vs. GAIA: Which Stock Should Value Investors Buy Now?
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 is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
TEGNA Inc. and Gaiam are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that TGNA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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 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.
TGNA currently has a forward P/E ratio of 10.28, while GAIA has a forward P/E of 196.40. We also note that TGNA has a PEG ratio of 1.03. 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 13.09.
Another notable valuation metric for TGNA is its P/B ratio of 2.15. 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 2.56.
These are just a few of the metrics contributing to TGNA's Value grade of A and GAIA's Value grade of D.
TGNA stands above GAIA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TGNA is the superior value option right now.