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TGNA vs. NFLX: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of TEGNA Inc. (TGNA - Free Report) and Netflix (NFLX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

TEGNA Inc. and Netflix 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 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 9.40, while NFLX has a forward P/E of 46.77. We also note that TGNA has a PEG ratio of 0.94. 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. NFLX currently has a PEG ratio of 1.44.

Another notable valuation metric for TGNA is its P/B ratio of 1.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NFLX has a P/B of 16.69.

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

TGNA sticks out from NFLX in both our Zacks Rank and Style Scores models, so value investors will likely feel that TGNA is the better option right now.


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