WallStSmart

Netflix Inc (NFLX)vsWestern Digital Corporation (WDC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 298% more annual revenue ($46.89B vs $11.78B). WDC leads profitability with a 55.3% profit margin vs 28.5%. WDC appears more attractively valued with a PEG of 0.58. WDC earns a higher WallStSmart Score of 80/100 (A-).

NFLX

Strong Buy

75

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 4.0Quality: 7.0
Piotroski: 6/9Altman Z: 3.27

WDC

Exceptional Buy

80

out of 100

Grade: A-

Growth: 7.3Profit: 9.5Value: 5.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXSignificantly Overvalued (-45.8%)

Margin of Safety

-45.8%

Fair Value

$53.99

Current Price

$82.18

$28.19 premium

UndervaluedFair: $53.99Overvalued

Intrinsic value data unavailable for WDC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NFLX6 strengths · Avg: 9.8/10
Market CapQuality
$343.90B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.0%10/10

Every $100 of equity generates 43 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

WDC6 strengths · Avg: 10.0/10
Market CapQuality
$225.26B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
67.0%10/10

Every $100 of equity generates 67 in profit

Profit MarginProfitability
55.3%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

EPS GrowthGrowth
482.9%10/10

Earnings expanding 482.9% YoY

Areas to Watch

NFLX3 concerns · Avg: 4.0/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
26.4x4/10

Moderate valuation

Price/BookValuation
11.1x4/10

Trading at 11.1x book value

WDC3 concerns · Avg: 3.3/10
P/E RatioValuation
39.1x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Price/BookValuation
27.5x2/10

Trading at 27.5x book value

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 : WDC

The strongest argument for WDC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.

Bear Case : NFLX

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

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Altman Z-Score, Price/Book.

Key Dynamics to Monitor

WDC carries more volatility with a beta of 2.20 — expect wider price swings.

WDC is growing revenue faster at 45.5% — 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

WDC scores higher overall (80/100 vs 75/100), backed by strong 55.3% margins and 45.5% revenue growth. Both earn "Exceptional 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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Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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