Netflix Inc (NFLX)vsWarner Bros Discovery Inc (WBD)
NFLX
Netflix Inc
$77.90
-1.91%
COMMUNICATION SERVICES · Cap: $322.29B
WBD
Warner Bros Discovery Inc
$28.07
+0.14%
COMMUNICATION SERVICES · Cap: $70.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Netflix Inc generates 34% more annual revenue ($48.37B vs $36.12B). NFLX leads profitability with a 28.2% profit margin vs -8.8%. NFLX appears more attractively valued with a PEG of 1.41. NFLX earns a higher WallStSmart Score of 73/100 (B).
NFLX
Strong Buy73
out of 100
Grade: B
WBD
Hold36
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-36.8%
Fair Value
$56.58
Current Price
$77.90
$21.32 premium
Margin of Safety
+56.0%
Fair Value
$63.56
Current Price
$28.07
$35.49 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 45 in profit
Strong operational efficiency at 33.4%
Safe zone — low bankruptcy risk
Keeps 28 of every $100 in revenue as profit
Generating 1.4B in free cash flow
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Trading at 10.8x book value
Expensive relative to growth rate
ROE of -9.6% — below average capital efficiency
Revenue declined 11.2%
Earnings declined 90.6%
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 28.2% and operating margin at 33.4%. Revenue growth of 13.4% demonstrates continued momentum.
Bull Case : WBD
The strongest argument for WBD centers on Market Cap, Price/Book.
Bear Case : NFLX
The primary concerns for NFLX are Price/Book.
Bear Case : WBD
The primary concerns for WBD are PEG Ratio, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
NFLX profiles as a mature stock while WBD is a turnaround play — different risk/reward profiles.
WBD carries more volatility with a beta of 1.57 — expect wider price swings.
NFLX is growing revenue faster at 13.4% — sustainability is the question.
NFLX generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
NFLX scores higher overall (73/100 vs 36/100), backed by strong 28.2% margins and 13.4% revenue growth. WBD offers better value entry with a 56.0% margin of safety. Both earn "Strong Buy" and "Hold" 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.
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