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NFLX vs. WMG: Netflix vs. Warner Music Stock Comparison

How do Netflix (NFLX) and Warner Music (WMG) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Netflix (NFLX) and Warner Music (WMG) are both classified in the Movies & Entertainment sub-industry within the broader Entertainment industry, placing them in the closest GICS peer bucket.

Netflix (NFLX) has more than two decades of public-market history since May 23, 2002, whereas Warner Music (WMG) listed on June 3, 2020 and has a much shorter record to draw on.

Company profile comparison for Netflix (NFLX) and Warner Music (WMG)
Profile ItemNFLXWMG
NameNetflix Inc.Warner Music Group Corp.
Country/RegionUnited StatesUnited States
GICS SectorCommunication ServicesCommunication Services
GICS Industry GroupMedia & EntertainmentMedia & Entertainment
GICS IndustryEntertainmentEntertainment
GICS Sub-IndustryMovies & EntertainmentMovies & Entertainment
Market Capitalization260.38 billion USD16.37 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMay 23, 2002June 3, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

NFLX
WMG
GSPC
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Netflix (NFLX) vs. Warner Music (WMG), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Netflix (NFLX) and Warner Music (WMG). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Netflix (NFLX) and Warner Music (WMG). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Netflix (NFLX) and Warner Music (WMG)
MetricNFLXWMG
Total Return (1Y)-42.22%6.98%
Total Return (3Y, Annualized)13.59%1.34%
Total Return (5Y, Annualized)-0.56%-6.02%

Risk Profile

Drawdown History

NFLX
WMG
GSPC
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Netflix (NFLX) vs. Warner Music (WMG), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Netflix (NFLX) and Warner Music (WMG). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Netflix (NFLX) and Warner Music (WMG)
MetricNFLXWMG
Volatility (1Y, Annualized)36.32%35.24%
Beta (5Y)1.581.31
Max Drawdown (5Y)-75.95%-53.17%
Avg. Volume (3M)36.31M2.05M

Risk-Adjusted Performance

Risk-Return Positioning

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NFLX and WMG are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Netflix (NFLX) and Warner Music (WMG)
MetricNFLXWMG
Sharpe Ratio (1Y)-1.280.08
Sortino Ratio (1Y)-1.740.11

Profitability

ROE (TTM)

Both Netflix (NFLX) at 53.46% and Warner Music (WMG) at 70.07% turn shareholders’ equity into profit at rates above their industry benchmark ranges for ROE. That is a strong capital-efficiency signal, though leverage and the equity base still matter.

NFLX

Media & Entertainment industry group

53.46%

NFLX
53.46%
Max
49.92%
Q3
17.95%
Median
7.20%
Q1
-4.53%
Min
-26.31%

WMG

Media & Entertainment industry group

70.07%

WMG
70.07%
Max
49.92%
Q3
17.95%
Median
7.20%
Q1
-4.53%
Min
-26.31%
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Margin (TTM)

Netflix (NFLX) at 29.69% retains a top-quartile share of revenue as profit, ahead of Warner Music (WMG) at 9.20%, which keeps about the industry-typical share.

NFLX

Media & Entertainment industry group

29.69%

Max
32.91%
NFLX
29.69%
Q3
11.75%
Median
5.04%
Q1
-4.17%
Min
-25.14%

WMG

Media & Entertainment industry group

9.20%

Max
32.91%
Q3
11.75%
WMG
9.20%
Median
5.04%
Q1
-4.17%
Min
-25.14%
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Margin (TTM)

Netflix (NFLX) at 34.63% operates in the top operating margin quartile, ahead of Warner Music (WMG) at 16.74%, which runs around its industry’s norm.

NFLX

Media & Entertainment industry group

34.63%

Max
40.16%
NFLX
34.63%
Q3
18.72%
Median
8.63%
Q1
1.90%
Min
-22.08%

WMG

Media & Entertainment industry group

16.74%

Max
40.16%
Q3
18.72%
WMG
16.74%
Median
8.63%
Q1
1.90%
Min
-22.08%
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for Netflix (NFLX) and Warner Music (WMG)
MetricNFLXWMG
ROE (TTM)53.46%70.07%
ROA (TTM)17.12%7.65%
Net Margin (TTM)29.69%9.20%
Operating Margin (TTM)34.63%16.74%
Gross Margin (TTM)50.69%45.77%

Growth

Revenue Growth

Netflix (NFLX) at 15.85% sits in the top revenue growth quartile, while Warner Music (WMG) at 4.37% is closer to the peer norm — faster top-line expansion for NFLX.

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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Netflix (NFLX) at 27.58% and Warner Music (WMG) at -16.87% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Netflix (NFLX) and Warner Music (WMG)
MetricNFLXWMG
Revenue Growth (YoY)15.85%4.37%
Revenue Growth (3Y CAGR)12.64%4.25%
EPS Growth (YoY)27.58%-16.87%
EPS Growth (3Y CAGR)36.49%-13.33%

Financial Strength

Current Ratio (MRQ)

Netflix (NFLX) at 1.08 keeps current ratio within its industry’s typical mid-range, while Warner Music (WMG) at 0.73 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for WMG.

NFLX

Media & Entertainment industry group

1.08

Max
4.69
Q3
2.53
Median
1.52
NFLX
1.08
Q1
0.95
Min
0.28

WMG

Media & Entertainment industry group

0.73

Max
4.69
Q3
2.53
Median
1.52
Q1
0.95
WMG
0.73
Min
0.28
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt / Equity (MRQ)

Netflix (NFLX) at 0.60 is near its industry mid-range for debt-to-equity ratio, while Warner Music (WMG) at 4.53 sits above its benchmark range, pointing to a heavier debt load relative to equity.

NFLX

Media & Entertainment industry group

0.60

Max
3.65
Q3
1.69
NFLX
0.60
Median
0.46
Q1
0.17
Min
0.00

WMG

Media & Entertainment industry group

4.53

WMG
4.53
Max
3.65
Q3
1.69
Median
0.46
Q1
0.17
Min
0.00
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their debt-to-equity ratio against the Media & Entertainment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Netflix (NFLX) and Warner Music (WMG)
MetricNFLXWMG
Current Ratio (MRQ)1.080.73
Debt / Equity (MRQ)0.604.53
Net Debt / EBITDA0.582.57

Dividends

Dividend Yield (TTM)

Netflix (NFLX) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Warner Music (WMG) reports a yield of 2.38%, ranking against industry peers normally.

NFLX

Media & Entertainment industry group

0.00%

Max
1.33%
Q3
0.65%
NFLX
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

WMG

Media & Entertainment industry group

2.38%

WMG
2.38%
Max
1.33%
Q3
0.65%
Median
0.00%
Q1
0.00%
Min
0.00%
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Netflix (NFLX) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Warner Music (WMG) reports a payout of 60.80%, ranking against industry peers normally.

NFLX

Media & Entertainment industry group

0.00%

Max
71.43%
Q3
28.98%
NFLX
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

WMG

Media & Entertainment industry group

60.80%

Max
71.43%
WMG
60.80%
Q3
28.98%
Median
0.00%
Q1
0.00%
Min
0.00%
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividend Metrics

Dividend metrics for Netflix (NFLX) and Warner Music (WMG)
MetricNFLXWMG
Dividend Yield (TTM)0.00%2.38%
Dividend Payout Ratio (TTM)0.00%60.80%

Valuation

P/E Ratio (TTM)

Both Netflix (NFLX) at 18.33 and Warner Music (WMG) at 25.04 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

NFLX

Media & Entertainment industry group

18.33

Max
51.21
Q3
28.90
NFLX
18.33
Median
17.98
Q1
11.53
Min
1.64

WMG

Media & Entertainment industry group

25.04

Max
51.21
Q3
28.90
WMG
25.04
Median
17.98
Q1
11.53
Min
1.64
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

P/S Ratio (TTM)

Warner Music (WMG) at 2.24 is priced about in line with its industry on P/S ratio, while Netflix (NFLX) at 5.24 sits in the pricier quartile — NFLX costs more per dollar of sales.

NFLX

Media & Entertainment industry group

5.24

Max
7.43
NFLX
5.24
Q3
3.82
Median
1.40
Q1
0.70
Min
0.00

WMG

Media & Entertainment industry group

2.24

Max
7.43
Q3
3.82
WMG
2.24
Median
1.40
Q1
0.70
Min
0.00
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their P/S ratio against the Media & Entertainment industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Netflix (NFLX) at 8.89 sits in the upper P/B ratio quartile, and Warner Music (WMG) at 19.17 prices even higher, above its industry range.

NFLX

Media & Entertainment industry group

8.89

Max
11.45
NFLX
8.89
Q3
5.30
Median
1.84
Q1
0.77
Min
-2.61

WMG

Media & Entertainment industry group

19.17

WMG
19.17
Max
11.45
Q3
5.30
Median
1.84
Q1
0.77
Min
-2.61
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Netflix (NFLX) vs. Warner Music (WMG): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation Metrics

Valuation metrics for Netflix (NFLX) and Warner Music (WMG)
MetricNFLXWMG
P/E Ratio (TTM)18.3325.04
P/S Ratio (TTM)5.242.24
P/B Ratio (MRQ)8.8919.17
Free Cash Flow Yield (TTM)9.78%2.33%