WallStSmart

Ambev SA ADR (ABEV)vsNetflix Inc (NFLX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Ambev SA ADR generates 88% more annual revenue ($88.21B vs $46.89B). NFLX leads profitability with a 28.5% profit margin vs 17.7%. NFLX appears more attractively valued with a PEG of 1.29. NFLX earns a higher WallStSmart Score of 77/100 (B+).

ABEV

Buy

57

out of 100

Grade: C

Growth: 3.3Profit: 8.5Value: 7.3Quality: 5.8
Piotroski: 5/9Altman Z: 2.39

NFLX

Strong Buy

77

out of 100

Grade: B+

Growth: 8.7Profit: 10.0Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 3.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABEVUndervalued (+74.4%)

Margin of Safety

+74.4%

Fair Value

$11.91

Current Price

$3.29

$8.62 discount

UndervaluedFair: $11.91Overvalued
NFLXSignificantly Overvalued (-56.1%)

Margin of Safety

-56.1%

Fair Value

$56.53

Current Price

$87.49

$30.96 premium

UndervaluedFair: $56.53Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABEV5 strengths · Avg: 8.6/10
Free Cash FlowQuality
$11.62B10/10

Generating 11.6B in free cash flow

Market CapQuality
$53.50B9/10

Large-cap with strong market position

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.5%8/10

Strong operational efficiency at 26.5%

NFLX6 strengths · Avg: 9.8/10
Market CapQuality
$371.60B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
48.5%10/10

Every $100 of equity generates 49 in profit

Operating MarginProfitability
32.3%10/10

Strong operational efficiency at 32.3%

EPS GrowthGrowth
86.4%10/10

Earnings expanding 86.4% YoY

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

ABEV3 concerns · Avg: 3.3/10
PEG RatioValuation
2.314/10

Expensive relative to growth rate

EPS GrowthGrowth
2.2%4/10

2.2% earnings growth

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

NFLX2 concerns · Avg: 4.0/10
P/E RatioValuation
28.5x4/10

Moderate valuation

Price/BookValuation
13.9x4/10

Trading at 13.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ABEV

The strongest argument for ABEV centers on Free Cash Flow, Market Cap, P/E Ratio. Profitability is solid with margins at 17.7% and operating margin at 26.5%.

Bull Case : NFLX

The strongest argument for NFLX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.5% and operating margin at 32.3%. Revenue growth of 16.2% demonstrates continued momentum.

Bear Case : ABEV

The primary concerns for ABEV are PEG Ratio, EPS Growth, Revenue Growth.

Bear Case : NFLX

The primary concerns for NFLX are P/E Ratio, Price/Book.

Key Dynamics to Monitor

ABEV profiles as a declining stock while NFLX is a growth play — different risk/reward profiles.

NFLX carries more volatility with a beta of 1.55 — expect wider price swings.

NFLX is growing revenue faster at 16.2% — sustainability is the question.

ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.

Bottom Line

NFLX scores higher overall (77/100 vs 57/100), backed by strong 28.5% margins and 16.2% revenue growth. ABEV offers better value entry with a 74.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ambev SA ADR

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.

Netflix Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.

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