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PARA vs. RSVR: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Media Conglomerates stocks have likely encountered both Paramount Global-B (PARA - Free Report) and Reservoir Media, Inc. (RSVR - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Paramount Global-B has a Zacks Rank of #2 (Buy), while Reservoir Media, Inc. has a Zacks Rank of #3 (Hold). This means that PARA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PARA currently has a forward P/E ratio of 9.71, while RSVR has a forward P/E of 38.71. We also note that PARA has a PEG ratio of 1.19. 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. RSVR currently has a PEG ratio of 2.58.
Another notable valuation metric for PARA is its P/B ratio of 0.71. 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, RSVR has a P/B of 1.21.
Based on these metrics and many more, PARA holds a Value grade of A, while RSVR has a Value grade of D.
PARA stands above RSVR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PARA is the superior value option right now.
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PARA vs. RSVR: Which Stock Should Value Investors Buy Now?
Investors with an interest in Media Conglomerates stocks have likely encountered both Paramount Global-B (PARA - Free Report) and Reservoir Media, Inc. (RSVR - 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Paramount Global-B has a Zacks Rank of #2 (Buy), while Reservoir Media, Inc. has a Zacks Rank of #3 (Hold). This means that PARA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PARA currently has a forward P/E ratio of 9.71, while RSVR has a forward P/E of 38.71. We also note that PARA has a PEG ratio of 1.19. 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. RSVR currently has a PEG ratio of 2.58.
Another notable valuation metric for PARA is its P/B ratio of 0.71. 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, RSVR has a P/B of 1.21.
Based on these metrics and many more, PARA holds a Value grade of A, while RSVR has a Value grade of D.
PARA stands above RSVR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PARA is the superior value option right now.