Netflix Inc (NFLX)vsSpotify Technology SA (SPOT)
NFLX
Netflix Inc
$65.56
-3.28%
COMMUNICATION SERVICES · Cap: $258.50B
SPOT
Spotify Technology SA
$603.01
-1.86%
COMMUNICATION SERVICES · Cap: $114.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 164% more annual revenue ($49.73B vs $18.81B). NFLX leads profitability with a 29.7% profit margin vs 15.7%. NFLX appears more attractively valued with a PEG of 0.98. NFLX earns a higher WallStSmart Score of 79/100 (B+).
NFLX
Strong Buy79
out of 100
Grade: B+
SPOT
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-6.6%
Fair Value
$58.25
Current Price
$65.56
$7.31 premium
Margin of Safety
-51.8%
Fair Value
$321.01
Current Price
$603.01
$282.00 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 50 in profit
Strong operational efficiency at 34.6%
Safe zone — low bankruptcy risk
Keeps 30 of every $100 in revenue as profit
Growing faster than its price suggests
Every $100 of equity generates 31 in profit
Conservative balance sheet, low leverage
Large-cap with strong market position
16.3% revenue growth
Areas to Watch
Trading at 9.2x book value
Premium valuation, high expectations priced in
Trading at 12.6x book value
Earnings declined 24.5%
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 29.7% and operating margin at 34.6%. Revenue growth of 11.8% demonstrates continued momentum.
Bull Case : SPOT
The strongest argument for SPOT centers on Return on Equity, Debt/Equity, Market Cap. Profitability is solid with margins at 15.7% and operating margin at 13.5%. Revenue growth of 16.3% demonstrates continued momentum.
Bear Case : NFLX
The primary concerns for NFLX are Price/Book.
Bear Case : SPOT
The primary concerns for SPOT are P/E Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
NFLX profiles as a mature stock while SPOT is a growth play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.61 — expect wider price swings.
SPOT is growing revenue faster at 16.3% — sustainability is the question.
NFLX generates stronger free cash flow (2.9B), providing more financial flexibility.
Bottom Line
NFLX scores higher overall (79/100 vs 56/100), backed by strong 29.7% margins and 11.8% 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.
Visit Website →Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
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