Get Premium to unlock powerful stock data

Apple vs. Netflix: A Comparative Analysis of 2 FAANG Companies

Stock Comparison Table looks at business quality of big tech companies

Author's Avatar
Mar 28, 2022
Summary
  • Apple and Netflix’s streaming platforms scored several wins at the Academy Awards.
  • GuruFocus’ Stock Comparison Table allows users to compare stock financial data in one table.
Article's Main Image

In light of Apple Inc. (

AAPL, Financial) and Netflix Inc. (NFLX, Financial) winning awards at the 94th Academy Awards, GuruFocus’ Stock Comparison Table allows Premium users to compare the companies’ financial strength, profitability, valuation and growth metrics in one table.

Apple’s “CODA” won awards for Best Picture, Best Adapted Screenplay and Best Supporting Actor, while Netflix’s “The Power of the Dog” took the award for Best Director.

Background

Apple and Netflix are among the FAANG stocks, which also include Meta Platforms Inc. (

FB, Financial), Amazon.com Inc. (AMZN, Financial) and Google-parent Alphabet Inc. (GOOGL, Financial)(GOOG, Financial).

While Apple primarily focuses on consumer electronics products, the Cupertino, California-based tech giant launched in November 2019 a streaming service platform called Apple TV+ to take on rival streaming platforms, including Netflix.

As such, GuruFocus users can compare financial strength, profitability, valuation and growth metrics for Apple and Netflix using the Stock Comparison Table.

Table 1 illustrates a stock comparison table containing Apple. Users can clear the list of competitors by clicking the “Clear” button.

1508552940154068992.png

Table 1

Table 2 illustrates a stock comparison table containing Apple and Netflix. Users can save a table by clicking on the Save button in the “Save” menu.

1508552942024728576.png

Table 2

Profitability and growth

Users can then select a predefined view under the “GuruFocus Views” tab or a user-saved view under the “My Views” tab. Users can then add additional fields into the view using the “Add Metrics” button. Table 3 illustrates a sample table containing a few profitability and growth fields.

1508552943484346368.png

Table 3

As Table 3 illustrates, Apple has slightly higher profit margins than Netflix does, though Netflix has higher revenue and operating margin growth.

1508516511545892864.png

Apple has a GuruFocus profitability rank of 10 based on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 7 and profit margins and returns that are outperforming more than 97% of global competitors.

1508529163890401280.png

Likewise, Netflix has a GuruFocus profitability rank of 9 on the back of a five-star business predictability rank, a Piotroski F-score of 6 and profit margins and returns that outperform over 88% of global competitors.

Financial strength and valuation

Table 4 illustrates a sample financial strength and valuation table for Apple and Netflix.

1508552944889438208.png

Table 4

As Table 4 illustrates, Apple has a GuruFocus financial strength rank of 7, while Netflix has a GuruFocus financial strength rank of 6. Apple’s interest coverage of 43.28 outperforms more than 62% of global competitors, while Netflix’s interest coverage of 7.48 underperforms more than 66% of global competitors.

1508540027066458112.png

Shares of Apple traded around $175.60 compared to a GF Value of $152.12, showing the stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.15.

1508540478180630528.png

Likewise, shares of Netflix traded around $378.51 compared to a GF Value of $631.03, showing the stock is significantly undervalued based on Monday’s price-to-GF Value ratio of 0.60.

1508542921702449152.png

Conclusions

While the stock comparison table can help users view financial strength, profitability and valuation metrics for several stocks, investors must also consider several other risks and factors before investing in the stocks listed in the table.

Disclosures

I am/ we are currently short the stocks mentioned. Click for the complete disclosure
Rating:
5 / 5 (1 votes)
Author's Avatar
WRITTEN BY

GuruFocus Screeners

Related Articles