WallStSmart

Airbnb Inc (ABNB)vsNetflix Inc (NFLX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 283% more annual revenue ($46.89B vs $12.24B). NFLX leads profitability with a 28.5% profit margin vs 20.5%. NFLX appears more attractively valued with a PEG of 1.29. NFLX earns a higher WallStSmart Score of 77/100 (B+).

ABNB

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 6.7Quality: 4.8
Piotroski: 4/9Altman Z: 1.49

NFLX

Strong Buy

77

out of 100

Grade: B+

Growth: 8.7Profit: 10.0Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 3.27
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABNBUndervalued (+41.0%)

Margin of Safety

+41.0%

Fair Value

$239.75

Current Price

$141.49

$98.26 discount

UndervaluedFair: $239.75Overvalued
NFLXSignificantly Overvalued (-54.5%)

Margin of Safety

-54.5%

Fair Value

$56.63

Current Price

$87.49

$30.86 premium

UndervaluedFair: $56.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABNB4 strengths · Avg: 9.0/10
Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

Market CapQuality
$83.51B9/10

Large-cap with strong market position

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Free Cash FlowQuality
$1.71B8/10

Generating 1.7B in free cash flow

NFLX6 strengths · Avg: 9.8/10
Market CapQuality
$371.60B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
48.5%10/10

Every $100 of equity generates 49 in profit

Operating MarginProfitability
32.3%10/10

Strong operational efficiency at 32.3%

EPS GrowthGrowth
86.4%10/10

Earnings expanding 86.4% YoY

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

ABNB4 concerns · Avg: 3.0/10
P/E RatioValuation
34.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.4x4/10

Trading at 10.4x book value

EPS GrowthGrowth
-23.7%2/10

Earnings declined 23.7%

Altman Z-ScoreHealth
1.492/10

Distress zone — elevated risk

NFLX2 concerns · Avg: 4.0/10
P/E RatioValuation
28.5x4/10

Moderate valuation

Price/BookValuation
13.9x4/10

Trading at 13.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ABNB

The strongest argument for ABNB centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 9.7%. Revenue growth of 12.0% demonstrates continued momentum.

Bull Case : NFLX

The strongest argument for NFLX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.5% and operating margin at 32.3%. Revenue growth of 16.2% demonstrates continued momentum.

Bear Case : ABNB

The primary concerns for ABNB are P/E Ratio, Price/Book, EPS Growth.

Bear Case : NFLX

The primary concerns for NFLX are P/E Ratio, Price/Book.

Key Dynamics to Monitor

ABNB profiles as a mature stock while NFLX is a growth play — different risk/reward profiles.

NFLX carries more volatility with a beta of 1.55 — expect wider price swings.

NFLX is growing revenue faster at 16.2% — sustainability is the question.

NFLX generates stronger free cash flow (5.1B), providing more financial flexibility.

Bottom Line

NFLX scores higher overall (77/100 vs 58/100), backed by strong 28.5% margins and 16.2% revenue growth. ABNB offers better value entry with a 41.0% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Airbnb Inc

CONSUMER CYCLICAL · TRAVEL SERVICES · USA

Airbnb, Inc. is an American company that operates an online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities, based in San Francisco, California.

Netflix Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.

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