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AMCX or NFLX: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either AMC Networks (AMCX - Free Report) or Netflix (NFLX - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, AMC Networks has a Zacks Rank of #1 (Strong Buy), while Netflix has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that AMCX likely has seen a stronger improvement to its earnings outlook than NFLX has recently. But this is only part of the picture 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.

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.

AMCX currently has a forward P/E ratio of 7.33, while NFLX has a forward P/E of 133.80. We also note that AMCX has a PEG ratio of 1.02. 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. NFLX currently has a PEG ratio of 4.72.

Another notable valuation metric for AMCX is its P/B ratio of 14.11. 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 34.97.

These are just a few of the metrics contributing to AMCX's Value grade of A and NFLX's Value grade of F.

AMCX sticks out from NFLX in both our Zacks Rank and Style Scores models, so value investors will likely feel that AMCX is the better option right now.


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