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NFLX vs T

NFLX
Netflix, Inc.
NEUTRAL
Price
$107.71
Market Cap
$456.89B
Sector
Communication Services
AI Confidence
80%
T
AT&T Inc.
NEUTRAL
Price
$25.88
Market Cap
$181.17B
Sector
Communication Services
AI Confidence
85%

Valuation

P/E Ratio
NFLX
42.57
T
8.51
Forward P/E
NFLX
27.74
T
10.16
P/B Ratio
NFLX
17.09
T
1.65
P/S Ratio
NFLX
10.11
T
1.44
EV/EBITDA
NFLX
33.87
T
7.7

Profitability

Gross Margin
NFLX
48.49%
T
59.55%
Operating Margin
NFLX
24.54%
T
18.42%
Profit Margin
NFLX
24.3%
T
17.47%
ROE
NFLX
42.76%
T
18.8%
ROA
NFLX
15.25%
T
4.08%

Growth

Revenue Growth
NFLX
17.6%
T
3.6%
Earnings Growth
NFLX
32.7%
T
-5.6%

Financial Health

Debt/Equity
NFLX
0.64
T
1.24
Current Ratio
NFLX
1.19
T
0.91
Quick Ratio
NFLX
1.06
T
0.6

Dividends

Dividend Yield
NFLX
--
T
4.29%
Payout Ratio
NFLX
0.0%
T
27.38%

AI Verdict

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)
T NEUTRAL

AT&T presents a classic value trap profile: fundamentally stable but lacking growth catalysts. The Piotroski F-Score of 5/9 indicates stable financial health, and the stock trades significantly below its Graham Number of $32.56, suggesting defensive undervaluation. However, negative earnings growth (-5.6% YoY) and a bearish technical trend (0/100) offset the attractive valuation. The company remains a strong cash-flow generator with a highly sustainable dividend payout ratio of 27.38%.

Strengths
Attractive valuation with a P/E of 8.51, well below sector averages
Strong profitability metrics including an 18.80% ROE and 17.47% profit margin
Highly sustainable dividend with a low payout ratio of 27.38%
Risks
Negative earnings growth both YoY (-5.6%) and Q/Q (-7.2%)
Bearish short-term technical momentum (1-month change of -9.1%)
High capital intensity and debt/equity ratio of 1.24

Compare Another Pair

NFLX vs T: Head-to-Head Comparison

This page compares Netflix, Inc. (NFLX) and AT&T Inc. (T) 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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