WallStSmart

Netflix Inc (NFLX)vsReservoir Media Inc (RSVR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 26593% more annual revenue ($46.89B vs $175.66M). NFLX leads profitability with a 28.5% profit margin vs 4.7%. RSVR appears more attractively valued with a PEG of 1.41. NFLX earns a higher WallStSmart Score of 75/100 (B).

NFLX

Strong Buy

75

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 4.0Quality: 7.0
Piotroski: 6/9Altman Z: 3.27

RSVR

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 5.0Value: 4.3Quality: 4.0
Piotroski: 4/9Altman Z: 0.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXSignificantly Overvalued (-50.8%)

Margin of Safety

-50.8%

Fair Value

$53.99

Current Price

$82.18

$28.19 premium

UndervaluedFair: $53.99Overvalued

Intrinsic value data unavailable for RSVR.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NFLX6 strengths · Avg: 9.8/10
Market CapQuality
$350.89B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.0%10/10

Every $100 of equity generates 43 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

RSVR3 strengths · Avg: 8.7/10
EPS GrowthGrowth
67.9%10/10

Earnings expanding 67.9% YoY

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.8%8/10

Strong operational efficiency at 24.8%

Areas to Watch

NFLX3 concerns · Avg: 4.0/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

P/E RatioValuation
26.9x4/10

Moderate valuation

Price/BookValuation
11.1x4/10

Trading at 11.1x book value

RSVR4 concerns · Avg: 3.0/10
Market CapQuality
$672.38M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.2%3/10

ROE of 2.2% — below average capital efficiency

Profit MarginProfitability
4.7%3/10

4.7% margin — thin

Debt/EquityHealth
1.233/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : RSVR

The strongest argument for RSVR centers on EPS Growth, Price/Book, Operating Margin. Revenue growth of 14.7% demonstrates continued momentum. PEG of 1.41 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 : RSVR

The primary concerns for RSVR are Market Cap, Return on Equity, Profit Margin. A P/E of 78.8x leaves little room for execution misses. Thin 4.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

NFLX generates stronger free cash flow (5.1B), providing more financial flexibility.

Bottom Line

NFLX scores higher overall (75/100 vs 61/100), backed by strong 28.5% margins and 16.2% 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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Reservoir Media Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Reservoir Media Inc. (RSVR) is a leading independent music rights management firm specializing in the acquisition, development, and monetization of a diverse array of musical intellectual property. With a robust catalog that includes both established and emerging talent across various genres, Reservoir leverages advanced technologies and an extensive industry network to maximize revenue for its clients. The company prioritizes equitable compensation for artists through a combination of traditional music publishing and cutting-edge digital platforms, solidifying its role as a key player in the dynamic global music landscape. Reservoir's strategic focus on creativity and flexibility not only fuels its growth but also enhances its competitive positioning in a rapidly evolving market.

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