WallStSmart

Netflix Inc (NFLX)vsPPG Industries Inc (PPG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 185% more annual revenue ($45.18B vs $15.88B). NFLX leads profitability with a 24.3% profit margin vs 9.9%. PPG appears more attractively valued with a PEG of 1.26. NFLX earns a higher WallStSmart Score of 70/100 (B).

NFLX

Strong Buy

70

out of 100

Grade: B

Growth: 8.7Profit: 9.0Value: 9.3Quality: 8.0
Piotroski: 6/9Altman Z: 3.27

PPG

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 7.3Quality: 5.5
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXUndervalued (+22.1%)

Margin of Safety

+22.1%

Fair Value

$118.40

Current Price

$92.28

$26.12 discount

UndervaluedFair: $118.40Overvalued
PPGSignificantly Overvalued (-182.2%)

Margin of Safety

-182.2%

Fair Value

$46.44

Current Price

$106.69

$60.25 premium

UndervaluedFair: $46.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NFLX6 strengths · Avg: 9.2/10
Market CapQuality
$385.67B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
42.8%10/10

Every $100 of equity generates 43 in profit

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
24.3%9/10

Keeps 24 of every $100 in revenue as profit

Operating MarginProfitability
24.5%8/10

Strong operational efficiency at 24.5%

Revenue GrowthGrowth
17.6%8/10

17.6% revenue growth

PPG2 strengths · Avg: 8.5/10
Return on EquityProfitability
21.1%9/10

Every $100 of equity generates 21 in profit

P/E RatioValuation
14.2x8/10

Attractively priced relative to earnings

Areas to Watch

NFLX3 concerns · Avg: 4.0/10
PEG RatioValuation
1.924/10

Expensive relative to growth rate

P/E RatioValuation
35.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.6x4/10

Trading at 14.6x book value

PPG1 concerns · Avg: 2.0/10
EPS GrowthGrowth
-10.0%2/10

Earnings declined 10.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : NFLX

The strongest argument for NFLX centers on Market Cap, Return on Equity, Altman Z-Score. Profitability is solid with margins at 24.3% and operating margin at 24.5%. Revenue growth of 17.6% demonstrates continued momentum.

Bull Case : PPG

The strongest argument for PPG centers on Return on Equity, P/E Ratio. PEG of 1.26 suggests the stock is reasonably priced for its growth.

Bear Case : NFLX

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

Bear Case : PPG

The primary concerns for PPG are EPS Growth.

Key Dynamics to Monitor

NFLX profiles as a growth stock while PPG is a value play — different risk/reward profiles.

NFLX carries more volatility with a beta of 1.71 — expect wider price swings.

NFLX is growing revenue faster at 17.6% — sustainability is the question.

NFLX generates stronger free cash flow (1.9B), providing more financial flexibility.

Bottom Line

NFLX scores higher overall (70/100 vs 61/100), backed by strong 24.3% margins and 17.6% revenue growth. 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.

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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PPG Industries Inc

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe.

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