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AMCX vs. NFLX: Which Stock Is the Better Value Option?

AMCX vs. NFLX: Which Stock Is the Better Value Option? Read More...
AMCX vs. NFLX: Which Stock Is the Better Value Option?

Investors looking for stocks in the Broadcast Radio and Television sector might want to consider either AMC Networks (AMCX) or Netflix (NFLX). 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.

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 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, AMC Networks is sporting a Zacks Rank of #2 (Buy), while Netflix has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AMCX is likely seeing its earnings outlook improve to a greater extent. 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.

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 6.40, while NFLX has a forward P/E of 112.24. We also note that AMCX has a PEG ratio of 0.73. 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 3.74.

Another notable valuation metric for AMCX is its P/B ratio of 6.39. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. By comparison, NFLX has a P/B of 28.78.

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

AMCX has seen stronger estimate revision activity and sports more attractive valuation metrics than NFLX, so it seems like value investors will conclude that AMCX is the superior option right now.

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AMC Networks Inc. (AMCX) : Free Stock Analysis Report
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Netflix, Inc. (NFLX) : Free Stock Analysis Report
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AMC Networks Inc. (AMCX) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
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