FOXA vs. NFLX: Which Stock Is the Better Value Option?
Investors interested in Broadcast Radio and Television stocks are likely familiar with Fox (FOXA) and Netflix (NFLX). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Fox is sporting a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FOXA is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
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.
FOXA currently has a forward P/E ratio of 9.75, while NFLX has a forward P/E of 36.02. We also note that FOXA has a PEG ratio of 0.81. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NFLX currently has a PEG ratio of 1.69.
Another notable valuation metric for FOXA is its P/B ratio of 1.47. 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 8.61.
These metrics, and several others, help FOXA earn a Value grade of A, while NFLX has been given a Value grade of C.
FOXA stands above NFLX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FOXA is the superior value option right now.
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See This Stock Now for Free >>Fox Corporation (FOXA) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
