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TGNA or NFLX: 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 Netflix (NFLX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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. has a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #3 (Hold) right now. 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. However, value investors will care about much more than just this.

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.

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 9.15, while NFLX has a forward P/E of 47.80. We also note that TGNA has a PEG ratio of 0.92. 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. NFLX currently has a PEG ratio of 1.47.

Another notable valuation metric for TGNA is its P/B ratio of 1.92. 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 17.15.

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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