Fox Corporation vs. Netflix: A Value Assessment for Investors

Investors examining Broadcast Radio and Television stocks are focusing on Fox Corporation (FOX) and Netflix (NFLX) as appealing options. This report highlights their valuations, with FOX standing out as a more favorable choice, potentially influencing stock prices.

Date: 25-01-2025

AI Rating: 7

Valuation Metrics Analysis

The report highlights the valuation metrics of Fox Corporation (FOX) and Netflix (NFLX), providing insights relevant to investors. Both companies hold a Zacks Rank of #2 (Buy), suggesting positive earnings outlooks. However, FOX demonstrates significantly more favorable valuation figures compared to NFLX.

FOX exhibits a forward P/E ratio of 11.77, while NFLX’s forward P/E stands at 40.75. This indicates that FOX is currently valued much lower based on its earnings, potentially making it a more attractive option for value investors.

The PEG ratio also reflects a substantial difference, with FOX at 1.67 and NFLX at 2.37. A lower PEG ratio suggests that FOX is expected to grow its EPS at a more favorable rate compared to its valuation, reinforcing FOX's position as a more appealing investment.

Further, FOX’s P/B ratio of 1.85 is significantly lower than NFLX’s P/B ratio of 17.01. This disparity indicates that FOX is trading at a more favorable price relative to its book value, making it potentially undervalued in comparison to NFLX.

The strong valuation ratings, with FOX receiving a Value grade of A and NFLX receiving a grade of D, highlight the differences in perceived value and quality between the two stocks. Investors might choose FOX over NFLX based on these metrics, influencing FOX's stock price positively.

Stocks: FOX NFLX