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

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Investors interested in Broadcast Radio and Television stocks are likely familiar with Tribune Media and Sirius XM (SIRI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Tribune Media has a Zacks Rank of #1 (Strong Buy), while Sirius XM has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TRCO has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

TRCO currently has a forward P/E ratio of 22.87, while SIRI has a forward P/E of 25.60. We also note that TRCO has a PEG ratio of 2.46. 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. SIRI currently has a PEG ratio of 2.78.

Another notable valuation metric for TRCO is its P/B ratio of 1.13. 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 167.24.

These are just a few of the metrics contributing to TRCO's Value grade of B and SIRI's Value grade of D.

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


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