Core Viewpoint - Fox Corporation (FOX) is currently viewed as a more attractive investment option compared to Netflix (NFLX) for value investors seeking undervalued stocks [1]. Group 1: Zacks Rank and Earnings Outlook - FOX has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while NFLX has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that FOX is likely experiencing a more favorable earnings outlook [3]. Group 2: Valuation Metrics - FOX has a forward P/E ratio of 9.93, significantly lower than NFLX's forward P/E of 39.72 [5]. - FOX's PEG ratio is 1.11, while NFLX's PEG ratio stands at 2.02, indicating that FOX is expected to grow earnings at a more favorable rate relative to its price [5]. - FOX's P/B ratio is 1.74, compared to NFLX's P/B of 16.82, further highlighting FOX's relative undervaluation [6]. Group 3: Value Grades - Based on the valuation metrics, FOX has earned a Value grade of B, whereas NFLX has received a Value grade of F [6]. - The combination of FOX's solid earnings outlook and favorable valuation figures positions it as the superior value option at this time [7].
FOX vs. NFLX: Which Stock Is the Better Value Option?