Investors interested in Broadcast Radio and Television stocks are likely familiar with Fox Corporation (FOX) and Netflix (NFLX). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Fox Corporation 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 FOX is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

FOX currently has a forward P/E ratio of 9.93, while NFLX has a forward P/E of 39.72. We also note that FOX has a PEG ratio of 1.11. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NFLX currently has a PEG ratio of 2.02.

Another notable valuation metric for FOX is its P/B ratio of 1.74. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NFLX has a P/B of 16.82.

These metrics, and several others, help FOX earn a Value grade of B, while NFLX has been given a Value grade of F.

FOX stands above NFLX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that FOX is the superior value option right now.

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

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