Seek Returns logo

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

Updated on

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

Company Profile

SymbolNFLXWFC
Company NameNetflix, Inc.Wells Fargo & Company
CountryUnited StatesUnited States
GICS SectorCommunication ServicesFinancials
GICS IndustryEntertainmentBanks
Market Capitalization519.90 billion USD264.28 billion USD
ExchangeNasdaqGSNYSE
Listing DateMay 23, 2002June 1, 1972
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolNFLXWFC
5-Day Price Return1.43%6.00%
13-Week Price Return0.98%11.50%
26-Week Price Return21.97%6.45%
52-Week Price Return77.72%45.45%
Month-to-Date Return5.53%2.32%
Year-to-Date Return37.27%17.45%
10-Day Avg. Volume2.66M12.74M
3-Month Avg. Volume3.53M16.61M
3-Month Volatility25.09%23.88%
Beta1.611.27

Profitability

Return on Equity (TTM)

NFLX

42.50%

Entertainment Industry

Max
42.50%
Q3
22.75%
Median
12.88%
Q1
7.15%
Min
-6.84%

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.

WFC

11.36%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

WFC’s Return on Equity of 11.36% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

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

Net Profit Margin (TTM)

NFLX

24.58%

Entertainment Industry

Max
45.25%
Q3
23.93%
Median
14.60%
Q1
4.89%
Min
-22.94%

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.

WFC

22.19%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

Falling into the lower quartile for the Banks industry, WFC’s Net Profit Margin of 22.19% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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

Operating Profit Margin (TTM)

NFLX

29.51%

Entertainment Industry

Max
46.83%
Q3
28.87%
Median
15.26%
Q1
8.95%
Min
-5.53%

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.

WFC

25.35%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

WFC’s Operating Profit Margin of 25.35% is in the lower quartile for the Banks industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

SymbolNFLXWFC
Return on Equity (TTM)42.50%11.36%
Return on Assets (TTM)19.42%1.06%
Net Profit Margin (TTM)24.58%22.19%
Operating Profit Margin (TTM)29.51%25.35%
Gross Profit Margin (TTM)48.49%--

Financial Strength

Current Ratio (MRQ)

NFLX

1.34

Entertainment Industry

Max
6.80
Q3
3.77
Median
1.87
Q1
0.86
Min
0.39

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.

WFC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

For the Banks industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

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

Debt-to-Equity Ratio (MRQ)

NFLX

0.58

Entertainment Industry

Max
1.65
Q3
0.71
Median
0.14
Q1
0.04
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.

WFC

2.01

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Banks industry.

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

Interest Coverage Ratio (TTM)

NFLX

23.05

Entertainment Industry

Max
62.11
Q3
31.19
Median
7.50
Q1
2.02
Min
-6.33

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.

WFC

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Banks industry.

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

Financial Strength at a Glance

SymbolNFLXWFC
Current Ratio (MRQ)1.34--
Quick Ratio (MRQ)1.34--
Debt-to-Equity Ratio (MRQ)0.582.01
Interest Coverage Ratio (TTM)23.05--

Growth

Revenue Growth

NFLX vs. WFC: 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. WFC: 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
2.54%
Q3
1.29%
Median
0.61%
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.

WFC

2.53%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

WFC’s Dividend Yield of 2.53% is consistent with its peers in the Banks industry, providing a dividend return that is standard for its sector.

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

Dividend Payout Ratio (TTM)

NFLX

0.00%

Entertainment Industry

Max
82.30%
Q3
45.76%
Median
29.16%
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.

WFC

31.00%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

WFC’s Dividend Payout Ratio of 31.00% is in the lower quartile for the Banks industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

SymbolNFLXWFC
Dividend Yield (TTM)0.00%2.53%
Dividend Payout Ratio (TTM)0.00%31.00%

Valuation

Price-to-Earnings Ratio (TTM)

NFLX

49.96

Entertainment Industry

Max
53.51
Q3
45.31
Median
33.16
Q1
18.21
Min
3.89

A P/E Ratio of 49.96 places NFLX in the upper quartile for the Entertainment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

WFC

12.27

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

WFC’s P/E Ratio of 12.27 is within the middle range for the Banks 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 vs. WFC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Entertainment and Banks industry benchmarks.

Price-to-Sales Ratio (TTM)

NFLX

12.28

Entertainment Industry

Max
12.81
Q3
7.20
Median
4.68
Q1
3.32
Min
0.79

NFLX’s P/S Ratio of 12.28 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.

WFC

1.91

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

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

Price-to-Book Ratio (MRQ)

NFLX

22.84

Entertainment Industry

Max
17.11
Q3
8.38
Median
5.24
Q1
2.18
Min
0.67

At 22.84, NFLX’s P/B Ratio is at an extreme premium to the Entertainment industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

WFC

1.42

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

WFC’s P/B Ratio of 1.42 is in the upper tier for the Banks 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. WFC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Banks industry benchmarks.

Valuation at a Glance

SymbolNFLXWFC
Price-to-Earnings Ratio (TTM)49.9612.27
Price-to-Sales Ratio (TTM)12.281.91
Price-to-Book Ratio (MRQ)22.841.42
Price-to-Free Cash Flow Ratio (TTM)60.2316.66