Seek Returns logo

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

Updated on

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

Company Profile

SymbolNFLXNOW
Company NameNetflix, Inc.ServiceNow, Inc.
CountryUnited StatesUnited States
GICS SectorCommunication ServicesInformation Technology
GICS IndustryEntertainmentSoftware
Market Capitalization490.08 billion USD189.33 billion USD
ExchangeNasdaqGSNYSE
Listing DateMay 23, 2002June 29, 2012
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of NFLX and NOW 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.

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

Historical Performance at a Glance

SymbolNFLXNOW
5-Day Price Return-4.40%-3.03%
13-Week Price Return-11.09%-12.67%
26-Week Price Return23.68%14.60%
52-Week Price Return62.19%3.63%
Month-to-Date Return-3.80%-0.86%
Year-to-Date Return29.39%-13.94%
10-Day Avg. Volume3.06M1.37M
3-Month Avg. Volume3.15M1.51M
3-Month Volatility24.75%30.54%
Beta1.730.97

Profitability

Return on Equity (TTM)

NFLX

42.50%

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 42.50% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

NOW

16.62%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

NOW’s Return on Equity of 16.62% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

NFLX

24.58%

Entertainment Industry

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

A Net Profit Margin of 24.58% places NFLX in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.

NOW

13.78%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

NOW’s Net Profit Margin of 13.78% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

Operating Profit Margin (TTM)

NFLX

29.51%

Entertainment Industry

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

An Operating Profit Margin of 29.51% 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.

NOW

13.28%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

NOW’s Operating Profit Margin of 13.28% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolNFLXNOW
Return on Equity (TTM)42.50%16.62%
Return on Assets (TTM)19.42%8.12%
Net Profit Margin (TTM)24.58%13.78%
Operating Profit Margin (TTM)29.51%13.28%
Gross Profit Margin (TTM)48.49%78.52%

Financial Strength

Current Ratio (MRQ)

NFLX

1.34

Entertainment Industry

Max
6.76
Q3
4.02
Median
1.55
Q1
0.86
Min
0.38

NFLX’s Current Ratio of 1.34 aligns with the median group of the Entertainment industry, indicating that its short-term liquidity is in line with its sector peers.

NOW

1.09

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

NOW’s Current Ratio of 1.09 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

NFLX vs. NOW: A comparison of their Current Ratio (MRQ) against their respective Entertainment and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

NFLX

0.58

Entertainment Industry

Max
1.54
Q3
0.77
Median
0.16
Q1
0.02
Min
0.00

NFLX’s Debt-to-Equity Ratio of 0.58 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.

NOW

0.14

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

NOW’s Debt-to-Equity Ratio of 0.14 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

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.

NOW

32.13

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

NOW’s Interest Coverage Ratio of 32.13 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolNFLXNOW
Current Ratio (MRQ)1.341.09
Quick Ratio (MRQ)1.340.99
Debt-to-Equity Ratio (MRQ)0.580.14
Interest Coverage Ratio (TTM)23.0532.13

Growth

Revenue Growth

NFLX vs. NOW: 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

NFLX vs. NOW: 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)

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.

NOW

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW 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.

NFLX vs. NOW: A comparison of their Dividend Yield (TTM) against their respective Entertainment and Software industry benchmarks.

Dividend Payout Ratio (TTM)

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.

NOW

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

NOW 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.

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

Dividend at a Glance

SymbolNFLXNOW
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

NFLX

48.03

Entertainment Industry

Max
92.09
Q3
54.51
Median
28.92
Q1
19.75
Min
2.96

NFLX’s P/E Ratio of 48.03 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.

NOW

113.97

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

A P/E Ratio of 113.97 places NOW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

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

Price-to-Sales Ratio (TTM)

NFLX

11.81

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

NFLX’s P/S Ratio of 11.81 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.

NOW

15.70

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

NOW’s P/S Ratio of 15.70 is in the upper echelon for the Software 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 vs. NOW: A comparison of their Price-to-Sales Ratio (TTM) against their respective Entertainment and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

NFLX

22.84

Entertainment Industry

Max
22.84
Q3
10.54
Median
6.60
Q1
2.30
Min
0.65

NFLX’s P/B Ratio of 22.84 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.

NOW

19.48

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

NOW’s P/B Ratio of 19.48 is in the upper tier for the Software 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 vs. NOW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Software industry benchmarks.

Valuation at a Glance

SymbolNFLXNOW
Price-to-Earnings Ratio (TTM)48.03113.97
Price-to-Sales Ratio (TTM)11.8115.70
Price-to-Book Ratio (MRQ)22.8419.48
Price-to-Free Cash Flow Ratio (TTM)57.9149.75