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

Company Overview

NFLX’s market capitalization of 515.86 billion USD is substantially larger than WBD’s 24.82 billion USD, indicating a significant difference in their market valuations.

With betas of 1.59 for NFLX and 1.52 for WBD, both stocks show similar sensitivity to overall market movements.

Performance Comparison

This chart compares the performance of NFLX and WBD 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.

Valuation Metrics Comparison

This section compares the market valuation of NFLX and WBD. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.

• NFLX’s Price-to-Earnings (P/E) ratio of 55.87 is very high, indicating its stock trades at a significant premium to its earnings, possibly due to strong investor sentiment or high growth expectations. WBD’s P/E ratio of -2.26 is negative, signaling it is currently unprofitable.
• NFLX’s Forward PEG ratio of 3.29 is very high. This suggests that investors have priced in a substantial amount of future earnings growth, potentially making the stock vulnerable if these high expectations are not met or if growth slows.
• NFLX’s Price-to-Book (P/B) ratio of 21.55 is very high. This often indicates that the market values the company significantly above its net asset value, usually reflecting strong profitability, valuable intangible assets (like brand or patents), or high expectations for future growth.

Dividend Comparison

Neither NFLX nor WBD currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

Financial Strength Metrics Comparison

This section evaluates the financial strength of NFLX and WBD. Noteworthy observations on their financial resilience, considered from an industry perspective, are detailed in the points that follow.

• WBD’s Interest Coverage Ratio (ICR) of -5.05 is negative. This signals that its current operating earnings are insufficient to meet its interest obligations, a critical red flag for its financial health and capacity to manage its debt.