Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either TEGNA Inc. (TGNA - Free Report) or 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.

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.

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 just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

TGNA currently has a forward P/E ratio of 11.05, while GAIA has a forward P/E of 111. We also note that TGNA has a PEG ratio of 1.10. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GAIA currently has a PEG ratio of 6.34.

Another notable valuation metric for TGNA is its P/B ratio of 2.17. 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 3.44.

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

TGNA is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TGNA is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gaia, Inc. (GAIA) - free report >>

TEGNA Inc. (TGNA) - free report >>

Published in