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TSQ or NFLX: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either Townsquare Media (TSQ - Free Report) or Netflix (NFLX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Townsquare Media and Netflix have a Zacks Rank of # 2 (Buy) right now. 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. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
TSQ currently has a forward P/E ratio of 6.86, while NFLX has a forward P/E of 35.91. We also note that TSQ has a PEG ratio of 0.57. 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 1.42.
Another notable valuation metric for TSQ is its P/B ratio of 2.38. 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 8.32.
These metrics, and several others, help TSQ earn a Value grade of A, while NFLX has been given a Value grade of C.
Both TSQ and NFLX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TSQ is the superior value option right now.
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TSQ or NFLX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either Townsquare Media (TSQ - Free Report) or Netflix (NFLX - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Townsquare Media and Netflix have a Zacks Rank of # 2 (Buy) right now. 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. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
TSQ currently has a forward P/E ratio of 6.86, while NFLX has a forward P/E of 35.91. We also note that TSQ has a PEG ratio of 0.57. 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 1.42.
Another notable valuation metric for TSQ is its P/B ratio of 2.38. 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 8.32.
These metrics, and several others, help TSQ earn a Value grade of A, while NFLX has been given a Value grade of C.
Both TSQ and NFLX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TSQ is the superior value option right now.