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CARS vs NFLX

CARS
Cars.com Inc.
BEARISH
Price
$11.15
Market Cap
$635.8M
Sector
Communication Services
AI Confidence
85%
NFLX
Netflix, Inc.
NEUTRAL
Price
$107.71
Market Cap
$456.89B
Sector
Communication Services
AI Confidence
80%

Valuation

P/E Ratio
CARS
34.84
NFLX
42.57
Forward P/E
CARS
4.85
NFLX
27.74
P/B Ratio
CARS
1.38
NFLX
17.09
P/S Ratio
CARS
0.88
NFLX
10.11
EV/EBITDA
CARS
6.99
NFLX
33.87

Profitability

Gross Margin
CARS
66.72%
NFLX
48.49%
Operating Margin
CARS
11.82%
NFLX
24.54%
Profit Margin
CARS
2.77%
NFLX
24.3%
ROE
CARS
4.08%
NFLX
42.76%
ROA
CARS
3.48%
NFLX
15.25%

Growth

Revenue Growth
CARS
1.9%
NFLX
17.6%
Earnings Growth
CARS
-53.6%
NFLX
32.7%

Financial Health

Debt/Equity
CARS
0.99
NFLX
0.64
Current Ratio
CARS
1.87
NFLX
1.19
Quick Ratio
CARS
1.67
NFLX
1.06

Dividends

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

AI Verdict

CARS BEARISH

CARS exhibits a stable financial foundation with a Piotroski F-Score of 6/9, but this is overshadowed by severe fundamental deterioration. The stock is trading at a significant premium to both its Graham Number ($7.62) and Intrinsic Value ($2.24), while experiencing a collapse in earnings growth (-53.60% YoY). Despite a low forward P/E of 4.85, the company has failed to beat earnings estimates in the last four consecutive quarters, suggesting that analyst expectations are disconnected from operational reality.

Strengths
Stable financial health indicated by Piotroski F-Score of 6/9
Strong liquidity position with a Current Ratio of 1.87 and Quick Ratio of 1.67
High Gross Margins (66.72%) providing a buffer for operating costs
Risks
Severe earnings contraction with YoY growth at -53.60%
Consistent failure to meet earnings expectations (0/4 beats in last 4 quarters)
Stagnant revenue growth (1.90% YoY) indicating a lack of market expansion
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

CARS vs NFLX: Head-to-Head Comparison

This page compares Cars.com Inc. (CARS) 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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