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AMCX vs. SIRI: 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 AMC Networks (AMCX - Free Report) or Sirius XM (SIRI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

AMC Networks has a Zacks Rank of #1 (Strong Buy), while Sirius XM has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that AMCX likely has seen a stronger improvement to its earnings outlook than SIRI has recently. 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 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.

AMCX currently has a forward P/E ratio of 6.98, while SIRI has a forward P/E of 24.82. We also note that AMCX has a PEG ratio of 0.97. 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. SIRI currently has a PEG ratio of 2.69.

Another notable valuation metric for AMCX is its P/B ratio of 9.74. 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, SIRI has a P/B of 168.59.

These metrics, and several others, help AMCX earn a Value grade of B, while SIRI has been given a Value grade of D.

AMCX has seen stronger estimate revision activity and sports more attractive valuation metrics than SIRI, so it seems like value investors will conclude that AMCX is the superior option right now.


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Sirius XM Holdings Inc. (SIRI) - free report >>

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