Seek Returns logo

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

Updated on

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

Company Profile

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

SymbolNFLXNVO
Company NameNetflix, Inc.Novo Nordisk A/S
CountryUnited StatesDenmark
GICS SectorCommunication ServicesHealth Care
GICS IndustryEntertainmentPharmaceuticals
Market Capitalization515.97 billion USD266.59 billion USD
ExchangeNasdaqGSNYSE
Listing DateMay 23, 2002April 30, 1981
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of NFLX and NVO 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. NVO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolNFLXNVO
5-Day Price Return4.45%2.50%
13-Week Price Return-5.75%-15.20%
26-Week Price Return32.41%-20.75%
52-Week Price Return72.99%67.26%
Month-to-Date Return1.28%9.01%
Year-to-Date Return36.23%-39.81%
10-Day Avg. Volume3.19M5.77M
3-Month Avg. Volume3.14M6.56M
3-Month Volatility25.46%63.71%
Beta1.721.55

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.

NVO

77.86%

Pharmaceuticals Industry

Max
38.59%
Q3
19.84%
Median
11.85%
Q1
5.40%
Min
-10.91%

NVO’s Return on Equity of 77.86% is exceptionally high, placing it well beyond the typical range for the Pharmaceuticals industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

NFLX vs. NVO: A comparison of their Return on Equity (TTM) against their respective Entertainment and Pharmaceuticals 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.

NVO

35.61%

Pharmaceuticals Industry

Max
40.67%
Q3
19.07%
Median
12.31%
Q1
4.50%
Min
-9.91%

A Net Profit Margin of 35.61% places NVO in the upper quartile for the Pharmaceuticals industry, signifying strong profitability and more effective cost management than most of its peers.

NFLX vs. NVO: A comparison of their Net Profit Margin (TTM) against their respective Entertainment and Pharmaceuticals 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.

NVO

45.78%

Pharmaceuticals Industry

Max
45.78%
Q3
23.14%
Median
16.68%
Q1
7.98%
Min
-7.13%

An Operating Profit Margin of 45.78% places NVO in the upper quartile for the Pharmaceuticals industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolNFLXNVO
Return on Equity (TTM)42.50%77.86%
Return on Assets (TTM)19.42%24.22%
Net Profit Margin (TTM)24.58%35.61%
Operating Profit Margin (TTM)29.51%45.78%
Gross Profit Margin (TTM)48.49%83.95%

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.

NVO

0.78

Pharmaceuticals Industry

Max
4.65
Q3
2.64
Median
1.85
Q1
1.26
Min
0.78

NVO’s Current Ratio of 0.78 falls into the lower quartile for the Pharmaceuticals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

NFLX vs. NVO: A comparison of their Current Ratio (MRQ) against their respective Entertainment and Pharmaceuticals 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.

NVO

0.59

Pharmaceuticals Industry

Max
1.75
Q3
0.82
Median
0.35
Q1
0.13
Min
0.00

NVO’s Debt-to-Equity Ratio of 0.59 is typical for the Pharmaceuticals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NFLX vs. NVO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Entertainment and Pharmaceuticals 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.

NVO

149.07

Pharmaceuticals Industry

Max
103.95
Q3
43.60
Median
9.83
Q1
2.37
Min
-42.71

With an Interest Coverage Ratio of 149.07, NVO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Pharmaceuticals industry. This stems from either robust earnings or a conservative debt load.

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

Financial Strength at a Glance

SymbolNFLXNVO
Current Ratio (MRQ)1.340.78
Quick Ratio (MRQ)1.340.56
Debt-to-Equity Ratio (MRQ)0.580.59
Interest Coverage Ratio (TTM)23.05149.07

Growth

Revenue Growth

NFLX vs. NVO: 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. NVO: 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.

NVO

3.06%

Pharmaceuticals Industry

Max
7.14%
Q3
3.45%
Median
2.17%
Q1
0.33%
Min
0.00%

NVO’s Dividend Yield of 3.06% is consistent with its peers in the Pharmaceuticals industry, providing a dividend return that is standard for its sector.

NFLX vs. NVO: A comparison of their Dividend Yield (TTM) against their respective Entertainment and Pharmaceuticals 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.

NVO

61.60%

Pharmaceuticals Industry

Max
199.58%
Q3
97.17%
Median
53.47%
Q1
22.97%
Min
0.00%

NVO’s Dividend Payout Ratio of 61.60% is within the typical range for the Pharmaceuticals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolNFLXNVO
Dividend Yield (TTM)0.00%3.06%
Dividend Payout Ratio (TTM)0.00%61.60%

Valuation

Price-to-Earnings Ratio (TTM)

NFLX

50.09

Entertainment Industry

Max
92.09
Q3
54.51
Median
28.92
Q1
19.75
Min
2.96

NFLX’s P/E Ratio of 50.09 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.

NVO

15.02

Pharmaceuticals Industry

Max
45.19
Q3
27.91
Median
20.59
Q1
15.08
Min
3.79

In the lower quartile for the Pharmaceuticals industry, NVO’s P/E Ratio of 15.02 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

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

Price-to-Sales Ratio (TTM)

NFLX

12.31

Entertainment Industry

Max
12.34
Q3
7.67
Median
5.06
Q1
2.72
Min
0.67

NFLX’s P/S Ratio of 12.31 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.

NVO

5.35

Pharmaceuticals Industry

Max
8.87
Q3
4.56
Median
2.14
Q1
1.58
Min
0.11

NVO’s P/S Ratio of 5.35 is in the upper echelon for the Pharmaceuticals 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. NVO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Entertainment and Pharmaceuticals 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.

NVO

8.87

Pharmaceuticals Industry

Max
9.78
Q3
4.99
Median
2.48
Q1
1.53
Min
0.59

NVO’s P/B Ratio of 8.87 is in the upper tier for the Pharmaceuticals 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. NVO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Pharmaceuticals industry benchmarks.

Valuation at a Glance

SymbolNFLXNVO
Price-to-Earnings Ratio (TTM)50.0915.02
Price-to-Sales Ratio (TTM)12.315.35
Price-to-Book Ratio (MRQ)22.848.87
Price-to-Free Cash Flow Ratio (TTM)60.3925.32
NFLX vs. NVO: A Head-to-Head Stock Comparison