Netflix Inc (NFLX)vsRoku Inc (ROKU)
NFLX
Netflix Inc
$82.18
+1.66%
COMMUNICATION SERVICES · Cap: $350.89B
ROKU
Roku Inc
$122.26
-2.65%
COMMUNICATION SERVICES · Cap: $21.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 844% more annual revenue ($46.89B vs $4.97B). NFLX leads profitability with a 28.5% profit margin vs 4.1%. ROKU appears more attractively valued with a PEG of 1.04. NFLX earns a higher WallStSmart Score of 75/100 (B).
NFLX
Strong Buy75
out of 100
Grade: B
ROKU
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.8%
Fair Value
$53.99
Current Price
$82.18
$28.19 premium
Intrinsic value data unavailable for ROKU.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 32.3%
Earnings expanding 86.4% YoY
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Revenue surging 22.4% year-over-year
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 11.1x book value
ROE of 7.5% — below average capital efficiency
4.1% margin — thin
Operating margin of 4.2%
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : ROKU
The strongest argument for ROKU centers on Debt/Equity, Revenue Growth. Revenue growth of 22.4% demonstrates continued momentum. PEG of 1.04 suggests the stock is reasonably priced for its growth.
Bear Case : NFLX
The primary concerns for NFLX are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : ROKU
The primary concerns for ROKU are Return on Equity, Profit Margin, Operating Margin. A P/E of 106.4x leaves little room for execution misses. Thin 4.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
ROKU carries more volatility with a beta of 2.03 — expect wider price swings.
ROKU is growing revenue faster at 22.4% — sustainability is the question.
NFLX generates stronger free cash flow (5.1B), providing more financial flexibility.
Monitor ENTERTAINMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NFLX scores higher overall (75/100 vs 44/100), backed by strong 28.5% margins and 16.2% revenue growth. 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.
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 →Roku Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Roku, Inc. operates a TV streaming platform. The company is headquartered in San Jose, California.
Visit Website →Compare with Other ENTERTAINMENT Stocks
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