ETN vs. NFLX: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ETN and NFLX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
NFLX’s market capitalization of 524.05 billion USD is significantly greater than ETN’s 129.61 billion USD, highlighting its more substantial market valuation.
With betas of 1.14 for ETN and 1.59 for NFLX, both stocks show similar sensitivity to overall market movements.
| Symbol | ETN | NFLX |
|---|---|---|
| Company Name | Eaton Corporation plc | Netflix, Inc. |
| Country | IE | US |
| Sector | Industrials | Communication Services |
| Industry | Industrial - Machinery | Entertainment |
| CEO | Mr. Craig Arnold | Mr. Theodore A. Sarandos |
| Price | 331.23 USD | 1,231.41 USD |
| Market Cap | 129.61 billion USD | 524.05 billion USD |
| Beta | 1.14 | 1.59 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 1, 1972 | May 23, 2002 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ETN and NFLX over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ETN
20.91%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 17.39%
- Median
- 11.26%
- Q1
- 3.81%
- Min
- -15.57%
In the upper quartile for the Industrial - Machinery industry, ETN’s Return on Equity of 20.91% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
NFLX
39.61%
Entertainment Industry
- Max
- 52.68%
- Q3
- 22.74%
- Median
- 4.22%
- Q1
- -9.02%
- Min
- -32.25%
In the upper quartile for the Entertainment industry, NFLX’s Return on Equity of 39.61% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ETN
12.67%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.42%
- Median
- 8.25%
- Q1
- 4.33%
- Min
- -5.88%
In the upper quartile for the Industrial - Machinery industry, ETN’s Return on Invested Capital of 12.67% signifies a highly effective use of its capital to generate profits when compared to its peers.
NFLX
22.23%
Entertainment Industry
- Max
- 18.44%
- Q3
- 7.94%
- Median
- 4.38%
- Q1
- -0.96%
- Min
- -11.28%
NFLX’s Return on Invested Capital of 22.23% is exceptionally high, placing it well beyond the typical range for the Entertainment industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
Net Profit Margin
ETN
15.55%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 14.29%
- Median
- 8.30%
- Q1
- 3.05%
- Min
- -8.75%
A Net Profit Margin of 15.55% places ETN in the upper quartile for the Industrial - Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
NFLX
23.09%
Entertainment Industry
- Max
- 23.09%
- Q3
- 7.10%
- Median
- 3.16%
- Q1
- -7.14%
- Min
- -21.62%
A Net Profit Margin of 23.09% places NFLX in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ETN
19.37%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 18.57%
- Median
- 13.43%
- Q1
- 6.13%
- Min
- -9.36%
An Operating Profit Margin of 19.37% places ETN in the upper quartile for the Industrial - Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
NFLX
27.65%
Entertainment Industry
- Max
- 27.65%
- Q3
- 14.60%
- Median
- 7.93%
- Q1
- -1.50%
- Min
- -17.48%
An Operating Profit Margin of 27.65% 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.
Profitability at a Glance
| Symbol | ETN | NFLX |
|---|---|---|
| Return on Equity (TTM) | 20.91% | 39.61% |
| Return on Assets (TTM) | 10.04% | 17.80% |
| Return on Invested Capital (TTM) | 12.67% | 22.23% |
| Net Profit Margin (TTM) | 15.55% | 23.09% |
| Operating Profit Margin (TTM) | 19.37% | 27.65% |
| Gross Profit Margin (TTM) | 38.44% | 46.87% |
Financial Strength
Current Ratio
ETN
1.31
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.76
- Median
- 2.11
- Q1
- 1.51
- Min
- 0.46
ETN’s Current Ratio of 1.31 falls into the lower quartile for the Industrial - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
NFLX
1.20
Entertainment Industry
- Max
- 2.86
- Q3
- 1.51
- Median
- 0.81
- Q1
- 0.44
- Min
- 0.26
NFLX’s Current Ratio of 1.20 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ETN
0.58
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
ETN’s Debt-to-Equity Ratio of 0.58 is typical for the Industrial - Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
NFLX
0.73
Entertainment Industry
- Max
- 8.03
- Q3
- 3.76
- Median
- 0.94
- Q1
- 0.70
- Min
- 0.00
NFLX’s Debt-to-Equity Ratio of 0.73 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.
Interest Coverage Ratio
ETN
36.86
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.87
- Median
- 8.23
- Q1
- 2.72
- Min
- -11.30
With an Interest Coverage Ratio of 36.86, ETN demonstrates a superior capacity to service its debt, placing it well above the typical range for the Industrial - Machinery industry. This stems from either robust earnings or a conservative debt load.
NFLX
14.77
Entertainment Industry
- Max
- 7.49
- Q3
- 3.71
- Median
- 1.51
- Q1
- -0.45
- Min
- -5.05
With an Interest Coverage Ratio of 14.77, NFLX demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ETN | NFLX |
|---|---|---|
| Current Ratio (TTM) | 1.31 | 1.20 |
| Quick Ratio (TTM) | 0.84 | 1.20 |
| Debt-to-Equity Ratio (TTM) | 0.58 | 0.73 |
| Debt-to-Asset Ratio (TTM) | 0.27 | 0.33 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.55 | 0.38 |
| Interest Coverage Ratio (TTM) | 36.86 | 14.77 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ETN and NFLX. These metrics are based on the companies’ annual financial reports.
Revenue Growth (YoY)
EPS Growth (YoY)
Free Cash Flow Growth (YoY)
Dividend
Dividend Yield
ETN
1.20%
Industrial - Machinery Industry
- Max
- 4.73%
- Q3
- 1.22%
- Median
- 0.46%
- Q1
- 0.00%
- Min
- 0.00%
ETN’s Dividend Yield of 1.20% is consistent with its peers in the Industrial - Machinery industry, providing a dividend return that is standard for its sector.
NFLX
0.00%
Entertainment Industry
- Max
- 7.40%
- Q3
- 0.98%
- Median
- 0.00%
- 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.
Dividend Payout Ratio
ETN
38.84%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 35.61%
- Median
- 15.96%
- Q1
- 0.00%
- Min
- 0.00%
ETN’s Dividend Payout Ratio of 38.84% is in the upper quartile for the Industrial - Machinery 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
- 82.73%
- Q3
- 14.80%
- Median
- 0.00%
- 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.
Dividend at a Glance
| Symbol | ETN | NFLX |
|---|---|---|
| Dividend Yield (TTM) | 1.20% | 0.00% |
| Dividend Payout Ratio (TTM) | 38.84% | 0.00% |
Valuation
Price-to-Earnings Ratio
ETN
33.00
Industrial - Machinery Industry
- Max
- 46.21
- Q3
- 33.59
- Median
- 26.50
- Q1
- 20.90
- Min
- 10.46
ETN’s P/E Ratio of 33.00 is within the middle range for the Industrial - Machinery 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
56.76
Entertainment Industry
- Max
- 83.14
- Q3
- 74.29
- Median
- 35.34
- Q1
- 15.48
- Min
- 6.97
NFLX’s P/E Ratio of 56.76 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.
Forward P/E to Growth Ratio
ETN
2.56
Industrial - Machinery Industry
- Max
- 5.71
- Q3
- 3.23
- Median
- 2.53
- Q1
- 1.55
- Min
- 0.10
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
NFLX
3.19
Entertainment Industry
- Max
- 5.22
- Q3
- 2.52
- Median
- 0.97
- Q1
- 0.21
- Min
- 0.06
A Forward PEG Ratio of 3.19 places NFLX in the upper quartile for the Entertainment industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
ETN
5.12
Industrial - Machinery Industry
- Max
- 8.34
- Q3
- 4.40
- Median
- 2.88
- Q1
- 1.66
- Min
- 0.30
ETN’s P/S Ratio of 5.12 is in the upper echelon for the Industrial - Machinery 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.
NFLX
13.06
Entertainment Industry
- Max
- 4.59
- Q3
- 2.66
- Median
- 1.30
- Q1
- 0.69
- Min
- 0.27
With a P/S Ratio of 13.06, NFLX trades at a valuation that eclipses even the highest in the Entertainment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
ETN
7.02
Industrial - Machinery Industry
- Max
- 7.17
- Q3
- 4.78
- Median
- 3.14
- Q1
- 2.09
- Min
- 0.01
ETN’s P/B Ratio of 7.02 is in the upper tier for the Industrial - Machinery 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.
NFLX
21.90
Entertainment Industry
- Max
- 24.29
- Q3
- 10.90
- Median
- 2.26
- Q1
- 1.18
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Entertainment industry.
Valuation at a Glance
| Symbol | ETN | NFLX |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 33.00 | 56.76 |
| Forward PEG Ratio (TTM) | 2.56 | 3.19 |
| Price-to-Sales Ratio (P/S, TTM) | 5.12 | 13.06 |
| Price-to-Book Ratio (P/B, TTM) | 7.02 | 21.90 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 39.06 | 70.38 |
| EV-to-EBITDA (TTM) | 23.88 | 20.02 |
| EV-to-Sales (TTM) | 5.47 | 13.31 |