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IQ vs. IMAX: Which Stock Is the Better Value Option?
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Investors interested in Film and Television Production and Distribution stocks are likely familiar with iQIYI, Inc. Sponsored ADR (IQ - Free Report) and Imax (IMAX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, iQIYI, Inc. Sponsored ADR has a Zacks Rank of #2 (Buy), while Imax has a Zacks Rank of #3 (Hold). This means that IQ's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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 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.
IQ currently has a forward P/E ratio of 10.18, while IMAX has a forward P/E of 18.20. We also note that IQ has a PEG ratio of 0.28. 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. IMAX currently has a PEG ratio of 0.91.
Another notable valuation metric for IQ is its P/B ratio of 2.49. 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, IMAX has a P/B of 2.60.
Based on these metrics and many more, IQ holds a Value grade of A, while IMAX has a Value grade of C.
IQ 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 IQ is likely the superior value option right now.
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IQ vs. IMAX: Which Stock Is the Better Value Option?
Investors interested in Film and Television Production and Distribution stocks are likely familiar with iQIYI, Inc. Sponsored ADR (IQ - Free Report) and Imax (IMAX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, iQIYI, Inc. Sponsored ADR has a Zacks Rank of #2 (Buy), while Imax has a Zacks Rank of #3 (Hold). This means that IQ's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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 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.
IQ currently has a forward P/E ratio of 10.18, while IMAX has a forward P/E of 18.20. We also note that IQ has a PEG ratio of 0.28. 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. IMAX currently has a PEG ratio of 0.91.
Another notable valuation metric for IQ is its P/B ratio of 2.49. 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, IMAX has a P/B of 2.60.
Based on these metrics and many more, IQ holds a Value grade of A, while IMAX has a Value grade of C.
IQ 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 IQ is likely the superior value option right now.