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BIDU vs NFLX

BIDU
Baidu, Inc.
NEUTRAL
Price
$161.44
Market Cap
$56.28B
Sector
Communication Services
AI Confidence
72%
NFLX
Netflix, Inc.
NEUTRAL
Price
$107.71
Market Cap
$456.89B
Sector
Communication Services
AI Confidence
80%

Valuation

P/E Ratio
BIDU
14.53
NFLX
42.57
Forward P/E
BIDU
19.6
NFLX
27.74
P/B Ratio
BIDU
1.44
NFLX
17.09
P/S Ratio
BIDU
0.43
NFLX
10.11
EV/EBITDA
BIDU
15.04
NFLX
33.87

Profitability

Gross Margin
BIDU
44.75%
NFLX
48.49%
Operating Margin
BIDU
3.52%
NFLX
24.54%
Profit Margin
BIDU
6.9%
NFLX
24.3%
ROE
BIDU
3.08%
NFLX
42.76%
ROA
BIDU
1.87%
NFLX
15.25%

Growth

Revenue Growth
BIDU
-7.1%
NFLX
17.6%
Earnings Growth
BIDU
--
NFLX
32.7%

Financial Health

Debt/Equity
BIDU
0.34
NFLX
0.64
Current Ratio
BIDU
1.91
NFLX
1.19
Quick Ratio
BIDU
1.65
NFLX
1.06

Dividends

Dividend Yield
BIDU
--
NFLX
--
Payout Ratio
BIDU
0.0%
NFLX
0.0%

AI Verdict

BIDU NEUTRAL

Baidu's financial health is strong with a Piotroski F-Score of 7/9, indicating solid operational performance and balance sheet strength. However, the lack of an Altman Z-Score prevents a full distress risk assessment, while declining revenue and earnings growth raise concerns about future momentum. Despite a current price of $161.44 trading near its Graham Number of $167.2, the stock shows mixed signals with weak profitability metrics like ROE (3.08%) and low profit margins (6.90%) relative to sector peers. Analysts maintain a 'buy' recommendation with a target of $171.54, supported by recent earnings beat trends, though decelerating fundamentals and bearish technicals temper near-term optimism.

Strengths
Strong Piotroski F-Score of 7/9 reflects robust financial health and earnings quality
Current price ($161.44) is near Graham Number ($167.2), suggesting limited downside risk based on defensive valuation
Low Debt/Equity ratio of 0.34 indicates conservative capital structure and low leverage risk
Risks
Revenue growth is negative YoY (-7.10%), signaling top-line contraction in a growth-sensitive sector
Earnings have declined sharply YoY (-33.0%) and QoQ (-18.1%), indicating deteriorating profitability
Operating margin is very low at 3.52%, well below sector average of 56.14%, reflecting pricing or cost pressures
NFLX NEUTRAL

Netflix exhibits a stable financial foundation with a Piotroski F-Score of 5/9, though it trades at a significant premium to its Graham Number ($18.94) and growth-based Intrinsic Value ($74.63). While profitability metrics are exceptional, including an ROE of 42.76% and strong margins, the valuation is stretched with a P/B of 17.09 and a PEG ratio of 2.22. The stock is currently caught between strong fundamental growth and bearish technicals/insider sentiment. Overall, the company is a high-performing business trading at a growth-adjusted premium.

Strengths
Exceptional Return on Equity (ROE) of 42.76%
Strong profitability with a 24.30% profit margin
Robust earnings growth (YoY +32.70%)
Risks
Significant overvaluation relative to book value (P/B 17.09)
Bearish insider activity with $94.78M in recent sales
Technical trend is currently bearish (0/100)

Compare Another Pair

BIDU vs NFLX: Head-to-Head Comparison

This page compares Baidu, Inc. (BIDU) and Netflix, Inc. (NFLX) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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