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

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Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of Fox (FOXA - Free Report) and 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Fox has a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that FOXA likely has seen a stronger improvement to its earnings outlook than NFLX has recently. But this is just one piece of the puzzle 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 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.

FOXA currently has a forward P/E ratio of 12.96, while NFLX has a forward P/E of 38.05. We also note that FOXA has a PEG ratio of 1.20. 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 1.94.

Another notable valuation metric for FOXA is its P/B ratio of 2.23. 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 16.17.

These are just a few of the metrics contributing to FOXA's Value grade of B and NFLX's Value grade of F.

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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