Netflix Inc (NFLX)vsWalmart Inc. (WMT)
NFLX
Netflix Inc
$87.49
-0.86%
COMMUNICATION SERVICES · Cap: $371.60B
WMT
Walmart Inc.
$130.43
+0.37%
CONSUMER DEFENSIVE · Cap: $1.04T
Smart Verdict
WallStSmart Research — data-driven comparison
Walmart Inc. generates 1421% more annual revenue ($713.16B vs $46.89B). NFLX leads profitability with a 28.5% profit margin vs 3.1%. 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+
WMT
Hold43
out of 100
Grade: D
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
-90.0%
Fair Value
$68.54
Current Price
$130.43
$61.89 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
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 22 in profit
Generating 6.1B in free cash flow
Areas to Watch
Moderate valuation
Trading at 13.9x book value
Trading at 10.4x book value
3.1% margin — thin
Operating margin of 4.6%
Expensive relative to growth rate
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 : WMT
The strongest argument for WMT centers on Market Cap, Altman Z-Score, Return on Equity.
Bear Case : NFLX
The primary concerns for NFLX are P/E Ratio, Price/Book.
Bear Case : WMT
The primary concerns for WMT are Price/Book, Profit Margin, Operating Margin. A P/E of 47.7x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
NFLX profiles as a growth stock while WMT is a value play — different risk/reward profiles.
NFLX carries more volatility with a beta of 1.55 — expect wider price swings.
NFLX is growing revenue faster at 16.2% — sustainability is the question.
WMT generates stronger free cash flow (6.1B), providing more financial flexibility.
Bottom Line
NFLX scores higher overall (77/100 vs 43/100), backed by strong 28.5% margins and 16.2% revenue growth. 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 →Walmart Inc.
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.
Visit Website →Compare with Other ENTERTAINMENT Stocks
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