Back to top

TRCO or SIRI: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

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

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 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.

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

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

TRCO currently has a forward P/E ratio of 22.77, while SIRI has a forward P/E of 25.20. We also note that TRCO has a PEG ratio of 2.45. 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. SIRI currently has a PEG ratio of 2.73.

Another notable valuation metric for TRCO is its P/B ratio of 1.12. 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 162.76.

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

TRCO 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 TRCO is likely the superior value option right now.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Tribune Media Company (TRCO) - free report >>

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

Published in