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

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Investors with an interest in Broadcast Radio and Television stocks have likely encountered both 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

TEGNA Inc. and Netflix are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that TGNA likely has seen a stronger improvement to its earnings outlook than NFLX has recently. 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 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 10.42, while NFLX has a forward P/E of 57.08. We also note that TGNA has a PEG ratio of 1.04. 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 1.86.

Another notable valuation metric for TGNA is its P/B ratio of 2.07. 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, NFLX has a P/B of 18.91.

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

TGNA has seen stronger estimate revision activity and sports more attractive valuation metrics than NFLX, so it seems like value investors will conclude that TGNA is the superior option right now.


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