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TSQ vs. TRCO: Which Stock Is the Better Value Option?

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Investors with an interest in Broadcast Radio and Television stocks have likely encountered both Townsquare Media (TSQ - Free Report) and Tribune Media . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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, Townsquare Media is sporting a Zacks Rank of #2 (Buy), while Tribune Media has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TSQ likely has seen a stronger improvement to its earnings outlook than TRCO has recently. But this is just one factor that value investors are interested in.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

TSQ currently has a forward P/E ratio of 10.82, while TRCO has a forward P/E of 11.92. We also note that TSQ has a PEG ratio of 2.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TRCO currently has a PEG ratio of 5.96.

Another notable valuation metric for TSQ is its P/B ratio of 0.44. 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, TRCO has a P/B of 0.95.

These are just a few of the metrics contributing to TSQ's Value grade of A and TRCO's Value grade of C.

TSQ sticks out from TRCO in both our Zacks Rank and Style Scores models, so value investors will likely feel that TSQ is the better option right now.


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