WallStSmart

Netflix Inc (NFLX)vsSociedad Quimica y Minera de Chile SA ADR B (SQM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 925% more annual revenue ($46.89B vs $4.58B). NFLX leads profitability with a 28.5% profit margin vs 12.9%. SQM appears more attractively valued with a PEG of 0.60. NFLX earns a higher WallStSmart Score of 77/100 (B+).

NFLX

Strong Buy

77

out of 100

Grade: B+

Growth: 8.7Profit: 10.0Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 3.27

SQM

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 6.0Quality: 7.3
Piotroski: 6/9Altman Z: 2.01
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXSignificantly Overvalued (-56.1%)

Margin of Safety

-56.1%

Fair Value

$56.53

Current Price

$87.49

$30.96 premium

UndervaluedFair: $56.53Overvalued
SQMUndervalued (+9.0%)

Margin of Safety

+9.0%

Fair Value

$82.67

Current Price

$91.60

$8.93 discount

UndervaluedFair: $82.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NFLX6 strengths · Avg: 9.8/10
Market CapQuality
$371.60B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
48.5%10/10

Every $100 of equity generates 49 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

SQM4 strengths · Avg: 8.5/10
EPS GrowthGrowth
52.3%10/10

Earnings expanding 52.3% YoY

PEG RatioValuation
0.608/10

Growing faster than its price suggests

Operating MarginProfitability
28.3%8/10

Strong operational efficiency at 28.3%

Revenue GrowthGrowth
23.3%8/10

Revenue surging 23.3% year-over-year

Areas to Watch

NFLX2 concerns · Avg: 4.0/10
P/E RatioValuation
28.5x4/10

Moderate valuation

Price/BookValuation
13.9x4/10

Trading at 13.9x book value

SQM1 concerns · Avg: 2.0/10
P/E RatioValuation
44.5x2/10

Premium valuation, high expectations priced in

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 : SQM

The strongest argument for SQM centers on EPS Growth, PEG Ratio, Operating Margin. Revenue growth of 23.3% demonstrates continued momentum. PEG of 0.60 suggests the stock is reasonably priced for its growth.

Bear Case : NFLX

The primary concerns for NFLX are P/E Ratio, Price/Book.

Bear Case : SQM

The primary concerns for SQM are P/E Ratio. A P/E of 44.5x leaves little room for execution misses.

Key Dynamics to Monitor

NFLX carries more volatility with a beta of 1.55 — expect wider price swings.

SQM is growing revenue faster at 23.3% — 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 (77/100 vs 66/100), backed by strong 28.5% margins and 16.2% 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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Sociedad Quimica y Minera de Chile SA ADR B

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Sociedad Qumica y Minera de Chile SA produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals and other products and services worldwide. The company is headquartered in Santiago, Chile.

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