Fox vs. Netflix: Comparing Stock Values and Performance

Fox (FOXA) and Netflix (NFLX) are both Zacks #2 ranked stocks, signaling positive earnings outlooks. However, Fox presents a better value opportunity with lower P/E and P/B ratios compared to Netflix, which may influence stock prices going forward.

Date: 02-03-2025

AI Rating: 7

Valuation Metrics Overview
Both Fox (FOXA) and Netflix (NFLX) hold a strong Zacks Rank of #2 (Buy), indicating that these stocks have benefitted from upward revisions in earnings estimates. This suggests that both companies have an improving earnings outlook, essential for investors prioritizing earnings potential.

FOXA shows notable strength in several key valuation metrics: a forward P/E ratio of 12.87 compared to NFLX’s high 39.19, and a PEG ratio of 1.25, which indicates a favorable growth outlook relative to its price. In contrast, NFLX has a PEG ratio of 2, suggesting that it may be overvalued based on its expected earnings growth.

Another critical metric is the P/B ratio, where FOXA stands at 2.21 versus NFLX's significantly higher 16.65. This disparity emphasizes FOXA's position as a relatively better value investment, indicating that investors are paying less for each dollar of net assets.

Consequently, FOXA has earned a Value grade of B, while NFLX has a much poorer Value grade of F. This data suggests that investors looking for value may prefer FOXA over NFLX based on the current share price levels and valuation metrics outlined in this report.

Stocks: FOXA NFLX