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NXST or NFLX: Which Is the Better Value Stock Right Now?
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Investors interested in Broadcast Radio and Television stocks are likely familiar with Nexstar Broadcasting Group (NXST - Free Report) and Netflix (NFLX - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Nexstar Broadcasting Group and Netflix are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that NXST likely has seen a stronger improvement to its earnings outlook than NFLX has recently. However, value investors will care about much more than just this.
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.
NXST currently has a forward P/E ratio of 10.06, while NFLX has a forward P/E of 49.37. We also note that NXST has a PEG ratio of 1.01. 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. NFLX currently has a PEG ratio of 1.52.
Another notable valuation metric for NXST is its P/B ratio of 2.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NFLX has a P/B of 17.38.
Based on these metrics and many more, NXST holds a Value grade of A, while NFLX has a Value grade of D.
NXST has seen stronger estimate revision activity and sports more attractive valuation metrics than NFLX, so it seems like value investors will conclude that NXST is the superior option right now.
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NXST or NFLX: Which Is the Better Value Stock Right Now?
Investors interested in Broadcast Radio and Television stocks are likely familiar with Nexstar Broadcasting Group (NXST - Free Report) and Netflix (NFLX - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Nexstar Broadcasting Group and Netflix are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that NXST likely has seen a stronger improvement to its earnings outlook than NFLX has recently. However, value investors will care about much more than just this.
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.
NXST currently has a forward P/E ratio of 10.06, while NFLX has a forward P/E of 49.37. We also note that NXST has a PEG ratio of 1.01. 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. NFLX currently has a PEG ratio of 1.52.
Another notable valuation metric for NXST is its P/B ratio of 2.67. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NFLX has a P/B of 17.38.
Based on these metrics and many more, NXST holds a Value grade of A, while NFLX has a Value grade of D.
NXST has seen stronger estimate revision activity and sports more attractive valuation metrics than NFLX, so it seems like value investors will conclude that NXST is the superior option right now.