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

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Investors interested in Broadcast Radio and Television stocks are likely familiar with Fox (FOXA - 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Fox has a Zacks Rank of #2 (Buy), while Gaiam has a Zacks Rank of #3 (Hold). This means that FOXA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

FOXA currently has a forward P/E ratio of 15.31, while GAIA has a forward P/E of 82.63. We also note that FOXA has a PEG ratio of 1.76. 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 5.51.

Another notable valuation metric for FOXA is its P/B ratio of 2.19. 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 2.43.

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

FOXA 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 FOXA is likely the superior value option right now.


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