FOX vs. FOXA: Which Stock Is the Better Value Option?

Investors interested in stocks from the Broadcast Radio and Television sector have probably already heard of Fox Corporation (FOX) and Fox (FOXA). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Currently, Fox Corporation has a Zacks Rank of #2 (Buy), while Fox has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FOX has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

FOX currently has a forward P/E ratio of 12.51, while FOXA has a forward P/E of 14.18. We also note that FOX has a PEG ratio of 7.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FOXA currently has a PEG ratio of 8.52.

Another notable valuation metric for FOX is its P/B ratio of 2.35. 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, FOXA has a P/B of 2.61.

These are just a few of the metrics contributing to FOX's Value grade of B and FOXA's Value grade of C.

FOX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FOX is likely the superior value option right now.

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This article originally published on Zacks Investment Research (zacks.com).

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