BABA vs. NFLX: A Head-to-Head Stock Comparison

Updated on November 17, 2025

Here’s a clear look at BABA and NFLX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

BABA trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, NFLX is a standard domestic listing.

Symbol	BABA	NFLX
Company Name	Alibaba Group Holding Limited	Netflix, Inc.
Country	Hong Kong	United States
GICS Sector	Consumer Discretionary	Communication Services
GICS Industry	Broadline Retail	Entertainment
Market Capitalization	401.03 billion USD	474.61 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	September 19, 2014	May 23, 2002
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of BABA and NFLX by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

BABA vs. NFLX: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	BABA	NFLX
5-Day Price Return	0.97%	2.48%
13-Week Price Return	39.83%	-8.06%
26-Week Price Return	34.62%	-3.06%
52-Week Price Return	65.66%	40.62%
Month-to-Date Return	-2.66%	0.11%
Year-to-Date Return	95.65%	25.66%
10-Day Avg. Volume	10.93M	4.35M
3-Month Avg. Volume	17.58M	3.60M
3-Month Volatility	52.84%	29.26%
Beta	0.33	1.70

Profitability

Return on Equity (TTM)

BABA

14.91%

Broadline Retail Industry

Max: 47.53%
Q3: 31.20%
Median: 16.63%
Q1: 10.81%
Min: -7.57%

BABA’s Return on Equity of 14.91% is on par with the norm for the Broadline Retail industry, indicating its profitability relative to shareholder equity is typical for the sector.

NFLX

41.86%

Entertainment Industry

Max: 42.50%
Q3: 24.06%
Median: 13.69%
Q1: 5.35%
Min: -17.95%

In the upper quartile for the Entertainment industry, NFLX’s Return on Equity of 41.86% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

BABA vs. NFLX: A comparison of their Return on Equity (TTM) against their respective Broadline Retail and Entertainment industry benchmarks.

Net Profit Margin (TTM)

BABA

14.82%

Broadline Retail Industry

Max: 24.63%
Q3: 12.77%
Median: 8.63%
Q1: 4.50%
Min: -1.62%

A Net Profit Margin of 14.82% places BABA in the upper quartile for the Broadline Retail industry, signifying strong profitability and more effective cost management than most of its peers.

NFLX

24.05%

Entertainment Industry

Max: 45.33%
Q3: 24.40%
Median: 13.94%
Q1: 4.28%
Min: -23.67%

NFLX’s Net Profit Margin of 24.05% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.

BABA vs. NFLX: A comparison of their Net Profit Margin (TTM) against their respective Broadline Retail and Entertainment industry benchmarks.

Operating Profit Margin (TTM)

BABA

13.98%

Broadline Retail Industry

Max: 27.48%
Q3: 17.60%
Median: 10.82%
Q1: 7.76%
Min: -6.73%

BABA’s Operating Profit Margin of 13.98% is around the midpoint for the Broadline Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

NFLX

29.14%

Entertainment Industry

Max: 41.77%
Q3: 28.26%
Median: 16.13%
Q1: 8.03%
Min: -3.93%

An Operating Profit Margin of 29.14% places NFLX in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

BABA vs. NFLX: A comparison of their Operating Profit Margin (TTM) against their respective Broadline Retail and Entertainment industry benchmarks.

Profitability at a Glance

Symbol	BABA	NFLX
Return on Equity (TTM)	14.91%	41.86%
Return on Assets (TTM)	8.16%	19.52%
Net Profit Margin (TTM)	14.82%	24.05%
Operating Profit Margin (TTM)	13.98%	29.14%
Gross Profit Margin (TTM)	41.18%	48.09%

Financial Strength

Current Ratio (MRQ)

BABA

1.45

Broadline Retail Industry

Max: 3.54
Q3: 2.42
Median: 1.38
Q1: 1.20
Min: 0.69

BABA’s Current Ratio of 1.45 aligns with the median group of the Broadline Retail industry, indicating that its short-term liquidity is in line with its sector peers.

NFLX

1.33

Entertainment Industry

Max: 6.76
Q3: 4.02
Median: 1.55
Q1: 0.86
Min: 0.38

NFLX’s Current Ratio of 1.33 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

BABA vs. NFLX: A comparison of their Current Ratio (MRQ) against their respective Broadline Retail and Entertainment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

BABA

0.23

Broadline Retail Industry

Max: 2.01
Q3: 1.31
Median: 0.72
Q1: 0.32
Min: 0.00

Falling into the lower quartile for the Broadline Retail industry, BABA’s Debt-to-Equity Ratio of 0.23 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

NFLX

0.56

Entertainment Industry

Max: 1.54
Q3: 0.77
Median: 0.16
Q1: 0.02
Min: 0.00

NFLX’s Debt-to-Equity Ratio of 0.56 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

BABA vs. NFLX: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Broadline Retail and Entertainment industry benchmarks.

Interest Coverage Ratio (TTM)

BABA

9.56

Broadline Retail Industry

Max: 37.34
Q3: 21.16
Median: 8.60
Q1: 3.22
Min: -19.29

BABA’s Interest Coverage Ratio of 9.56 is positioned comfortably within the norm for the Broadline Retail industry, indicating a standard and healthy capacity to cover its interest payments.

NFLX

23.05

Entertainment Industry

Max: 87.17
Q3: 35.59
Median: 7.06
Q1: 1.13
Min: -44.74

NFLX’s Interest Coverage Ratio of 23.05 is positioned comfortably within the norm for the Entertainment industry, indicating a standard and healthy capacity to cover its interest payments.

BABA vs. NFLX: A comparison of their Interest Coverage Ratio (TTM) against their respective Broadline Retail and Entertainment industry benchmarks.

Financial Strength at a Glance

Symbol	BABA	NFLX
Current Ratio (MRQ)	1.45	1.33
Quick Ratio (MRQ)	0.97	1.28
Debt-to-Equity Ratio (MRQ)	0.23	0.56
Interest Coverage Ratio (TTM)	9.56	23.05

Growth

Revenue Growth

BABA vs. NFLX: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

BABA vs. NFLX: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

BABA

2.07%

Broadline Retail Industry

Max: 4.06%
Q3: 2.07%
Median: 0.37%
Q1: 0.00%
Min: 0.00%

With a Dividend Yield of 2.07%, BABA offers a more attractive income stream than most of its peers in the Broadline Retail industry, signaling a strong commitment to shareholder returns.

NFLX

0.00%

Entertainment Industry

Max: 2.90%
Q3: 1.29%
Median: 0.59%
Q1: 0.00%
Min: 0.00%

NFLX currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

BABA vs. NFLX: A comparison of their Dividend Yield (TTM) against their respective Broadline Retail and Entertainment industry benchmarks.

Dividend Payout Ratio (TTM)

BABA

103.01%

Broadline Retail Industry

Max: 114.82%
Q3: 62.39%
Median: 28.55%
Q1: 0.00%
Min: 0.00%

BABA’s Dividend Payout Ratio of 103.01% is in the upper quartile for the Broadline Retail industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

NFLX

0.00%

Entertainment Industry

Max: 82.30%
Q3: 38.45%
Median: 29.74%
Q1: 0.00%
Min: 0.00%

NFLX has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

BABA vs. NFLX: A comparison of their Dividend Payout Ratio (TTM) against their respective Broadline Retail and Entertainment industry benchmarks.

Dividend at a Glance

Symbol	BABA	NFLX
Dividend Yield (TTM)	2.07%	0.00%
Dividend Payout Ratio (TTM)	103.01%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

BABA

18.86

Broadline Retail Industry

Max: 62.76
Q3: 32.50
Median: 17.65
Q1: 12.08
Min: 6.87

BABA’s P/E Ratio of 18.86 is within the middle range for the Broadline Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

NFLX

45.75

Entertainment Industry

Max: 92.09
Q3: 54.51
Median: 28.92
Q1: 19.75
Min: 2.96

NFLX’s P/E Ratio of 45.75 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

BABA vs. NFLX: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Broadline Retail and Entertainment industry benchmarks.

Price-to-Sales Ratio (TTM)

BABA

2.79

Broadline Retail Industry

Max: 5.19
Q3: 3.25
Median: 2.13
Q1: 1.01
Min: 0.21

BABA’s P/S Ratio of 2.79 aligns with the market consensus for the Broadline Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NFLX

11.00

Entertainment Industry

Max: 12.34
Q3: 7.67
Median: 5.06
Q1: 2.72
Min: 0.67

NFLX’s P/S Ratio of 11.00 is in the upper echelon for the Entertainment industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

BABA vs. NFLX: A comparison of their Price-to-Sales Ratio (TTM) against their respective Broadline Retail and Entertainment industry benchmarks.

Price-to-Book Ratio (MRQ)

BABA

1.90

Broadline Retail Industry

Max: 8.81
Q3: 5.19
Median: 3.42
Q1: 1.75
Min: 0.73

BABA’s P/B Ratio of 1.90 is within the conventional range for the Broadline Retail industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

NFLX

19.63

Entertainment Industry

Max: 22.84
Q3: 10.54
Median: 6.60
Q1: 2.30
Min: 0.65

NFLX’s P/B Ratio of 19.63 is in the upper tier for the Entertainment industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

BABA vs. NFLX: A comparison of their Price-to-Book Ratio (MRQ) against their respective Broadline Retail and Entertainment industry benchmarks.

Valuation at a Glance

Symbol	BABA	NFLX
Price-to-Earnings Ratio (TTM)	18.86	45.75
Price-to-Sales Ratio (TTM)	2.79	11.00
Price-to-Book Ratio (MRQ)	1.90	19.63
Price-to-Free Cash Flow Ratio (TTM)	36.07	53.22