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CMLS vs. NFLX: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either Cumulus Media (CMLS - Free Report) or Netflix (NFLX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Right now, both Cumulus Media and Netflix are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
CMLS currently has a forward P/E ratio of 3.98, while NFLX has a forward P/E of 29.24. 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 1.50.
Another notable valuation metric for CMLS is its P/B ratio of 0.34. 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, NFLX has a P/B of 6.47.
These metrics, and several others, help CMLS earn a Value grade of A, while NFLX has been given a Value grade of C.
Both CMLS and NFLX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CMLS is the superior value option right now.
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CMLS vs. NFLX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either Cumulus Media (CMLS - Free Report) or Netflix (NFLX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Right now, both Cumulus Media and Netflix are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
CMLS currently has a forward P/E ratio of 3.98, while NFLX has a forward P/E of 29.24. 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 1.50.
Another notable valuation metric for CMLS is its P/B ratio of 0.34. 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, NFLX has a P/B of 6.47.
These metrics, and several others, help CMLS earn a Value grade of A, while NFLX has been given a Value grade of C.
Both CMLS and NFLX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CMLS is the superior value option right now.