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META vs NFLX

META
Meta Platforms, Inc.
BULLISH
Price
$612.42
Market Cap
$1.55T
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
META
26.04
NFLX
42.57
Forward P/E
META
17.03
NFLX
27.74
P/B Ratio
META
7.13
NFLX
17.09
P/S Ratio
META
7.71
NFLX
10.11
EV/EBITDA
META
15.24
NFLX
33.87

Profitability

Gross Margin
META
82.0%
NFLX
48.49%
Operating Margin
META
41.32%
NFLX
24.54%
Profit Margin
META
30.08%
NFLX
24.3%
ROE
META
30.24%
NFLX
42.76%
ROA
META
16.21%
NFLX
15.25%

Growth

Revenue Growth
META
23.8%
NFLX
17.6%
Earnings Growth
META
10.7%
NFLX
32.7%

Financial Health

Debt/Equity
META
0.39
NFLX
0.64
Current Ratio
META
2.6
NFLX
1.19
Quick Ratio
META
2.42
NFLX
1.06

Dividends

Dividend Yield
META
0.34%
NFLX
--
Payout Ratio
META
8.94%
NFLX
0.0%

AI Verdict

META BULLISH

META exhibits exceptional fundamental health with a Piotroski F-Score of 8/9, indicating strong financial strength across profitability, leverage, and operating efficiency. While the current price of $612.42 trades at a premium to the Graham Number ($213.17) and the growth-based Intrinsic Value ($542.14), the PEG ratio of 0.94 suggests the stock is undervalued relative to its high growth rate. Strong revenue growth (23.8%) and a low forward P/E (17.03) outweigh the bearish technical trend and insider selling. The company's dominant market position and consistent earnings beats support a bullish long-term outlook.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 8/9
Exceptional profitability with 82% gross margins and 41.31% operating margins
Robust revenue growth of 23.8% YoY, outperforming sector averages
Risks
Bearish insider sentiment with 14 sell transactions and zero buys in the last 6 months
Negative short-term technical trend (0/100) and recent 6-month price decline of 19.2%
High Price-to-Book ratio (7.13) indicating a significant premium over book value
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

META vs NFLX: Head-to-Head Comparison

This page compares Meta Platforms, Inc. (META) 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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