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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 companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

TEGNA Inc. has a Zacks Rank of #2 (Buy), while Gaiam has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TGNA has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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 10.28, while GAIA has a forward P/E of 139.83. We also note that TGNA has a PEG ratio of 1.03. 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. GAIA currently has a PEG ratio of 9.32.

Another notable valuation metric for TGNA is its P/B ratio of 1.88. 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, GAIA has a P/B of 2.80.

Based on these metrics and many more, TGNA holds a Value grade of A, while GAIA has a 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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