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IMAX vs. WMG: Which Stock Is the Better Value Option?
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Investors with an interest in Film and Television Production and Distribution stocks have likely encountered both Imax (IMAX - Free Report) and Warner Music Group Corp. (WMG - 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.
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 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, Imax has a Zacks Rank of #2 (Buy), while Warner Music Group Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IMAX is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
IMAX currently has a forward P/E ratio of 18.41, while WMG has a forward P/E of 26.87. We also note that IMAX has a PEG ratio of 0.92. 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. WMG currently has a PEG ratio of 2.81.
Another notable valuation metric for IMAX is its P/B ratio of 2.69. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WMG has a P/B of 56.35.
These metrics, and several others, help IMAX earn a Value grade of B, while WMG has been given a Value grade of D.
IMAX stands above WMG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IMAX is the superior value option right now.
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IMAX vs. WMG: Which Stock Is the Better Value Option?
Investors with an interest in Film and Television Production and Distribution stocks have likely encountered both Imax (IMAX - Free Report) and Warner Music Group Corp. (WMG - 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.
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 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, Imax has a Zacks Rank of #2 (Buy), while Warner Music Group Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IMAX is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
IMAX currently has a forward P/E ratio of 18.41, while WMG has a forward P/E of 26.87. We also note that IMAX has a PEG ratio of 0.92. 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. WMG currently has a PEG ratio of 2.81.
Another notable valuation metric for IMAX is its P/B ratio of 2.69. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WMG has a P/B of 56.35.
These metrics, and several others, help IMAX earn a Value grade of B, while WMG has been given a Value grade of D.
IMAX stands above WMG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that IMAX is the superior value option right now.