WallStSmart

Netflix Inc (NFLX)vsSea Ltd (SE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 97% more annual revenue ($45.18B vs $22.94B). NFLX leads profitability with a 24.3% profit margin vs 6.9%. SE appears more attractively valued with a PEG of 0.56. SE 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

SE

Strong Buy

70

out of 100

Grade: B-

Growth: 10.0Profit: 6.0Value: 8.7Quality: 5.5
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXUndervalued (+22.1%)

Margin of Safety

+22.1%

Fair Value

$118.40

Current Price

$90.92

$27.48 discount

UndervaluedFair: $118.40Overvalued
SEUndervalued (+2.9%)

Margin of Safety

+2.9%

Fair Value

$117.94

Current Price

$78.31

$39.63 discount

UndervaluedFair: $117.94Overvalued

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

SE4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

EPS GrowthGrowth
58.5%10/10

Earnings expanding 58.5% YoY

PEG RatioValuation
0.568/10

Growing faster than its price suggests

Free Cash FlowQuality
$1.04B8/10

Generating 1.0B 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
14.4x4/10

Trading at 14.4x book value

SE2 concerns · Avg: 3.5/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

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 : SE

The strongest argument for SE centers on Revenue Growth, EPS Growth, PEG Ratio. Revenue growth of 38.4% demonstrates continued momentum. PEG of 0.56 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 : SE

The primary concerns for SE are P/E Ratio, Profit Margin.

Key Dynamics to Monitor

NFLX profiles as a growth stock while SE is a hypergrowth play — different risk/reward profiles.

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

SE is growing revenue faster at 38.4% — 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 70/100), backed by strong 24.3% margins and 17.6% revenue growth. 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.

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Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

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