We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PARA or RSVR: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Media Conglomerates sector have probably already heard of Paramount Global-B (PARA - Free Report) and Reservoir Media, Inc. (RSVR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Paramount Global-B and Reservoir Media, Inc. are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PARA currently has a forward P/E ratio of 6.82, while RSVR has a forward P/E of 81.44. We also note that PARA has a PEG ratio of 0.59. 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. RSVR currently has a PEG ratio of 8.14.
Another notable valuation metric for PARA is its P/B ratio of 0.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RSVR has a P/B of 1.35.
These are just a few of the metrics contributing to PARA's Value grade of A and RSVR's Value grade of D.
Both PARA and RSVR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PARA is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PARA or RSVR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Media Conglomerates sector have probably already heard of Paramount Global-B (PARA - Free Report) and Reservoir Media, Inc. (RSVR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both Paramount Global-B and Reservoir Media, Inc. are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
PARA currently has a forward P/E ratio of 6.82, while RSVR has a forward P/E of 81.44. We also note that PARA has a PEG ratio of 0.59. 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. RSVR currently has a PEG ratio of 8.14.
Another notable valuation metric for PARA is its P/B ratio of 0.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RSVR has a P/B of 1.35.
These are just a few of the metrics contributing to PARA's Value grade of A and RSVR's Value grade of D.
Both PARA and RSVR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PARA is the superior value option right now.