WallStSmart

Netflix Inc (NFLX)vsProcter & Gamble Company (PG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Procter & Gamble Company generates 89% more annual revenue ($85.26B vs $45.18B). NFLX leads profitability with a 24.3% profit margin vs 19.3%. NFLX appears more attractively valued with a PEG of 1.92. NFLX earns a higher WallStSmart Score of 70/100 (B).

NFLX

Strong Buy

70

out of 100

Grade: B

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

PG

Buy

55

out of 100

Grade: C

Growth: 3.3Profit: 9.0Value: 4.7Quality: 7.0
Piotroski: 4/9Altman Z: 3.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXUndervalued (+22.1%)

Margin of Safety

+22.1%

Fair Value

$118.40

Current Price

$92.28

$26.12 discount

UndervaluedFair: $118.40Overvalued
PGSignificantly Overvalued (-211.9%)

Margin of Safety

-211.9%

Fair Value

$45.90

Current Price

$143.92

$98.02 premium

UndervaluedFair: $45.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

PG5 strengths · Avg: 9.2/10
Market CapQuality
$337.14B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
31.6%10/10

Every $100 of equity generates 32 in profit

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

Free Cash FlowQuality
$3.81B8/10

Generating 3.8B in free cash flow

Areas to Watch

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

PG3 concerns · Avg: 2.7/10
Revenue GrowthGrowth
1.5%4/10

1.5% revenue growth

PEG RatioValuation
3.932/10

Expensive relative to growth rate

EPS GrowthGrowth
-5.4%2/10

Earnings declined 5.4%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : PG

The strongest argument for PG centers on Market Cap, Return on Equity, Altman Z-Score. Profitability is solid with margins at 19.3% and operating margin at 26.3%.

Bear Case : NFLX

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

Bear Case : PG

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

Key Dynamics to Monitor

NFLX profiles as a growth stock while PG is a value 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.

PG generates stronger free cash flow (3.8B), providing more financial flexibility.

Bottom Line

NFLX scores higher overall (70/100 vs 55/100), backed by strong 24.3% margins and 17.6% revenue growth. 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.

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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Procter & Gamble Company

CONSUMER DEFENSIVE · HOUSEHOLD & PERSONAL PRODUCTS · USA

The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health, consumer health, personal care, and hygiene products; these products are organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine, & Family Care. Before the sale of Pringles to Kellogg's, its product portfolio also included food, snacks, and beverages.

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