Netflix Inc (NFLX)vsPhilip Morris International Inc (PM)
NFLX
Netflix Inc
$92.28
+1.50%
COMMUNICATION SERVICES · Cap: $385.67B
PM
Philip Morris International Inc
$165.50
+0.99%
CONSUMER DEFENSIVE · Cap: $255.09B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 11% more annual revenue ($45.18B vs $40.65B). PM leads profitability with a 27.9% profit margin vs 24.3%. PM appears more attractively valued with a PEG of 1.86. PM earns a higher WallStSmart Score of 70/100 (B-).
NFLX
Strong Buy70
out of 100
Grade: B
PM
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.1%
Fair Value
$118.40
Current Price
$92.28
$26.12 discount
Margin of Safety
+17.9%
Fair Value
$201.54
Current Price
$165.50
$36.04 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Safe zone — low bankruptcy risk
Keeps 24 of every $100 in revenue as profit
Strong operational efficiency at 24.5%
17.6% revenue growth
Mega-cap, among the largest globally
Strong operational efficiency at 32.9%
Keeps 28 of every $100 in revenue as profit
Generating 4.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 14.6x book value
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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 : PM
The strongest argument for PM centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 32.9%.
Bear Case : NFLX
The primary concerns for NFLX are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : PM
The primary concerns for PM are PEG Ratio, Return on Equity.
Key Dynamics to Monitor
NFLX profiles as a growth stock while PM is a mature 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.
PM generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
NFLX scores higher overall (70/100 vs 70/100), backed by strong 24.3% margins and 17.6% revenue growth. PM offers better value entry with a 17.9% margin of safety. Both earn "Strong Buy" and "Strong 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.
Visit Website →Philip Morris International Inc
CONSUMER DEFENSIVE · TOBACCO · USA
Philip Morris International Inc. (PMI) is a Swiss-American multinational cigarette and tobacco manufacturing company, with products sold in over 180 countries. The most recognized and best selling product of the company is Marlboro.
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