Netflix Inc (NFLX)vsWaters Corporation (WAT)
NFLX
Netflix Inc
$87.49
-0.86%
COMMUNICATION SERVICES · Cap: $371.60B
WAT
Waters Corporation
$355.13
+1.32%
HEALTHCARE · Cap: $34.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 1144% more annual revenue ($46.89B vs $3.77B). NFLX leads profitability with a 28.5% profit margin vs 11.9%. NFLX appears more attractively valued with a PEG of 1.29. NFLX earns a higher WallStSmart Score of 77/100 (B+).
NFLX
Strong Buy77
out of 100
Grade: B+
WAT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-56.1%
Fair Value
$56.53
Current Price
$87.49
$30.96 premium
Margin of Safety
-63.1%
Fair Value
$201.83
Current Price
$355.13
$153.30 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 49 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
Revenue surging 91.5% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Moderate valuation
Trading at 13.9x book value
Expensive relative to growth rate
Trading at 8.3x book value
ROE of 5.2% — below average capital efficiency
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 : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.
Bear Case : NFLX
The primary concerns for NFLX are P/E Ratio, Price/Book.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.
Key Dynamics to Monitor
NFLX carries more volatility with a beta of 1.55 — expect wider price swings.
WAT is growing revenue faster at 91.5% — 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 52/100), 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.
Visit Website →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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