WallStSmart

LEIFRAS Co., Ltd. American Depositary Shares (LFS)vsNetflix Inc (NFLX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 303% more annual revenue ($48.37B vs $12.00B). NFLX leads profitability with a 28.2% profit margin vs 3.7%. LFS trades at a lower P/E of 20.3x. NFLX earns a higher WallStSmart Score of 73/100 (B).

LFS

Hold

41

out of 100

Grade: D

Growth: 5.3Profit: 7.0Value: 5.3Quality: 7.5
Piotroski: 7/9Altman Z: 4.02

NFLX

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 10.0Value: 4.7Quality: 7.5
Piotroski: 6/9Altman Z: 3.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for LFS.

NFLXSignificantly Overvalued (-36.8%)

Margin of Safety

-36.8%

Fair Value

$56.58

Current Price

$77.40

$20.82 premium

UndervaluedFair: $56.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LFS2 strengths · Avg: 10.0/10
Return on EquityProfitability
30.4%10/10

Every $100 of equity generates 30 in profit

Altman Z-ScoreHealth
4.0210/10

Safe zone — low bankruptcy risk

NFLX6 strengths · Avg: 9.5/10
Market CapQuality
$322.29B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
45.3%10/10

Every $100 of equity generates 45 in profit

Operating MarginProfitability
33.4%10/10

Strong operational efficiency at 33.4%

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.37B8/10

Generating 1.4B in free cash flow

Areas to Watch

LFS4 concerns · Avg: 2.5/10
Market CapQuality
$58.34M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

EPS GrowthGrowth
-3.4%2/10

Earnings declined 3.4%

Free Cash FlowQuality
$-146.81M2/10

Negative free cash flow — burning cash

NFLX1 concerns · Avg: 4.0/10
Price/BookValuation
10.7x4/10

Trading at 10.7x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : LFS

The strongest argument for LFS centers on Return on Equity, Altman Z-Score.

Bull Case : NFLX

The strongest argument for NFLX centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 28.2% and operating margin at 33.4%. Revenue growth of 13.4% demonstrates continued momentum.

Bear Case : LFS

The primary concerns for LFS are Market Cap, Profit Margin, EPS Growth. Thin 3.7% margins leave little buffer for downturns.

Bear Case : NFLX

The primary concerns for NFLX are Price/Book.

Key Dynamics to Monitor

LFS profiles as a value stock while NFLX is a mature play — different risk/reward profiles.

NFLX is growing revenue faster at 13.4% — sustainability is the question.

NFLX generates stronger free cash flow (1.4B), providing more financial flexibility.

Monitor ENTERTAINMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NFLX scores higher overall (73/100 vs 41/100), backed by strong 28.2% margins and 13.4% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

LEIFRAS Co., Ltd. American Depositary Shares

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Leifras Co., Ltd. is a sports and social business company in Japan. The company is headquartered in Shibuya, Japan.

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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