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CMLS 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 Cumulus Media (CMLS - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Cumulus Media and Netflix are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CMLS likely has seen a stronger improvement to its earnings outlook than NFLX has recently. But this is only part of the picture for value investors.
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.
CMLS currently has a forward P/E ratio of 4.08, while NFLX has a forward P/E of 22.97. We also note that CMLS has a PEG ratio of 0.27. 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 1.18.
Another notable valuation metric for CMLS is its P/B ratio of 0.33. 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 5.36.
Based on these metrics and many more, CMLS holds a Value grade of A, while NFLX has a Value grade of C.
CMLS stands above NFLX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CMLS is the superior value option right now.
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CMLS or NFLX: Which Is the Better Value Stock Right Now?
Investors interested in Broadcast Radio and Television stocks are likely familiar with Cumulus Media (CMLS - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Cumulus Media and Netflix are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CMLS likely has seen a stronger improvement to its earnings outlook than NFLX has recently. But this is only part of the picture for value investors.
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.
CMLS currently has a forward P/E ratio of 4.08, while NFLX has a forward P/E of 22.97. We also note that CMLS has a PEG ratio of 0.27. 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 1.18.
Another notable valuation metric for CMLS is its P/B ratio of 0.33. 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 5.36.
Based on these metrics and many more, CMLS holds a Value grade of A, while NFLX has a Value grade of C.
CMLS stands above NFLX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CMLS is the superior value option right now.