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IAC vs NFLX

IAC
IAC Inc.
NEUTRAL
Price
$40.85
Market Cap
$3.14B
Sector
Communication Services
AI Confidence
80%
NFLX
Netflix, Inc.
NEUTRAL
Price
$96.15
Market Cap
$407.86B
Sector
Communication Services
AI Confidence
60%

Valuation

P/E Ratio
IAC
--
NFLX
38.0
Forward P/E
IAC
18.07
NFLX
24.95
P/B Ratio
IAC
0.67
NFLX
15.25
P/S Ratio
IAC
1.31
NFLX
9.03
EV/EBITDA
IAC
16.27
NFLX
30.3

Profitability

Gross Margin
IAC
66.16%
NFLX
48.49%
Operating Margin
IAC
14.47%
NFLX
24.54%
Profit Margin
IAC
-4.35%
NFLX
24.3%
ROE
IAC
-2.1%
NFLX
42.76%
ROA
IAC
0.81%
NFLX
15.25%

Growth

Revenue Growth
IAC
-10.5%
NFLX
17.6%
Earnings Growth
IAC
--
NFLX
32.7%

Financial Health

Debt/Equity
IAC
0.34
NFLX
0.64
Current Ratio
IAC
2.75
NFLX
1.19
Quick Ratio
IAC
2.51
NFLX
1.06

Dividends

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

AI Verdict

IAC NEUTRAL

IAC presents a contradictory profile characterized by a very weak Piotroski F-Score of 2/9, indicating deteriorating operational health, contrasted by a strong liquidity position and deep value valuation. While the company trades at a significant discount to book value (P/B 0.67), it is struggling with negative revenue growth (-10.5% YoY) and highly volatile earnings. The balance sheet remains healthy with low debt/equity (0.34) and a strong current ratio (2.75), providing a safety buffer despite operational headwinds. The overall outlook is neutral as the deep value is offset by shrinking top-line growth and poor fundamental health scores.

Strengths
Deep value valuation with Price-to-Book ratio of 0.67
Strong short-term liquidity with a Current Ratio of 2.75
Conservative leverage with Debt/Equity at 0.34
Risks
Severe operational deterioration indicated by Piotroski F-Score of 2/9
Significant revenue contraction (-34.7% Q/Q growth)
Highly erratic earnings history with frequent and large misses
NFLX NEUTRAL

NFLX shows bullish fundamentals based on deterministic rules. Financial strength is stable (F-Score 5/9). Key strengths include strong valuation and growth metrics. Price trades at a 28.8% premium to fair value estimate ($74.63), limiting near-term upside from a valuation perspective.

Strengths
Strong profitability (24.3% margin)
Strong revenue growth of 17.6%
Strong ROE of 42.8%
Risks
High valuation with P/E of 38.0
Premium vs Graham Number ($18.94)
Price trades at a 28.8% premium to fair value estimate ($74.63), limiting near-term upside from a valuation perspective.

Compare Another Pair

IAC vs NFLX: Head-to-Head Comparison

This page compares IAC Inc. (IAC) 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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