WallStSmart

Alliance Entertainment Holding Corporation Class A Common Stock (AENT)vsNetflix Inc (NFLX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 4149% more annual revenue ($45.18B vs $1.06B). NFLX leads profitability with a 24.3% profit margin vs 2.1%. AENT trades at a lower P/E of 15.3x. NFLX earns a higher WallStSmart Score of 70/100 (B).

AENT

Hold

48

out of 100

Grade: D+

Growth: 4.0Profit: 5.5Value: 8.3Quality: 5.0

NFLX

Strong Buy

70

out of 100

Grade: B

Growth: 8.7Profit: 9.0Value: 9.3Quality: 8.0
Piotroski: 6/9Altman Z: 3.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AENTUndervalued (+65.8%)

Margin of Safety

+65.8%

Fair Value

$20.12

Current Price

$7.01

$13.11 discount

UndervaluedFair: $20.12Overvalued
NFLXUndervalued (+22.1%)

Margin of Safety

+22.1%

Fair Value

$118.40

Current Price

$92.28

$26.12 discount

UndervaluedFair: $118.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AENT3 strengths · Avg: 8.3/10
Return on EquityProfitability
20.5%9/10

Every $100 of equity generates 21 in profit

P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
29.7%8/10

Earnings expanding 29.7% YoY

NFLX6 strengths · Avg: 9.2/10
Market CapQuality
$385.67B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
42.8%10/10

Every $100 of equity generates 43 in profit

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
24.3%9/10

Keeps 24 of every $100 in revenue as profit

Operating MarginProfitability
24.5%8/10

Strong operational efficiency at 24.5%

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

Areas to Watch

AENT4 concerns · Avg: 2.8/10
Market CapQuality
$335.81M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

Revenue GrowthGrowth
-6.3%2/10

Revenue declined 6.3%

NFLX3 concerns · Avg: 4.0/10
PEG RatioValuation
1.924/10

Expensive relative to growth rate

P/E RatioValuation
35.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.6x4/10

Trading at 14.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AENT

The strongest argument for AENT centers on Return on Equity, P/E Ratio, EPS Growth.

Bull Case : NFLX

The strongest argument for NFLX centers on Market Cap, Return on Equity, Altman Z-Score. Profitability is solid with margins at 24.3% and operating margin at 24.5%. Revenue growth of 17.6% demonstrates continued momentum.

Bear Case : AENT

The primary concerns for AENT are Market Cap, Profit Margin, Operating Margin. Thin 2.1% margins leave little buffer for downturns.

Bear Case : NFLX

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

Key Dynamics to Monitor

AENT profiles as a value stock while NFLX is a growth play — different risk/reward profiles.

NFLX carries more volatility with a beta of 1.71 — expect wider price swings.

NFLX is growing revenue faster at 17.6% — sustainability is the question.

NFLX generates stronger free cash flow (1.9B), providing more financial flexibility.

Bottom Line

NFLX scores higher overall (70/100 vs 48/100), backed by strong 24.3% margins and 17.6% revenue growth. AENT offers better value entry with a 65.8% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Alliance Entertainment Holding Corporation Class A Common Stock

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Alliance Entertainment Holding Corporation is a wholesaler, distributor, and e-commerce provider for the entertainment industry globally. The company is headquartered in Plantation, Florida.

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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