Netflix Inc (NFLX)vsWarner Bros Discovery Inc (WBD)
NFLX
Netflix Inc
$92.06
-1.66%
COMMUNICATION SERVICES · Cap: $394.17B
WBD
Warner Bros Discovery Inc
$26.97
-0.30%
COMMUNICATION SERVICES · Cap: $67.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 26% more annual revenue ($46.89B vs $37.30B). NFLX leads profitability with a 28.5% profit margin vs 1.9%. NFLX appears more attractively valued with a PEG of 1.34. NFLX earns a higher WallStSmart Score of 74/100 (B).
NFLX
Strong Buy74
out of 100
Grade: B
WBD
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-63.1%
Fair Value
$56.43
Current Price
$92.06
$35.63 premium
Margin of Safety
+60.7%
Fair Value
$71.27
Current Price
$26.97
$44.30 discount
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
Earnings expanding 226.7% YoY
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 14.6x book value
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
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 : WBD
The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.
Bear Case : NFLX
The primary concerns for NFLX are P/E Ratio, Price/Book.
Bear Case : WBD
The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. A P/E of 93.3x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
NFLX profiles as a growth stock while WBD is a value play — different risk/reward profiles.
NFLX carries more volatility with a beta of 1.67 — 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 (74/100 vs 51/100), backed by strong 28.5% margins and 16.2% revenue growth. WBD offers better value entry with a 60.7% margin of safety. 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 →Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
Compare with Other ENTERTAINMENT Stocks
Want to dig deeper into these stocks?