WallStSmart

Netflix Inc (NFLX)vsReading International B Inc (RDIB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 22449% more annual revenue ($46.89B vs $207.94M). NFLX leads profitability with a 28.5% profit margin vs -8.4%. NFLX earns a higher WallStSmart Score of 75/100 (B).

NFLX

Strong Buy

75

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 4.0Quality: 7.0
Piotroski: 6/9Altman Z: 3.27

RDIB

Avoid

25

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: -0.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXSignificantly Overvalued (-50.8%)

Margin of Safety

-50.8%

Fair Value

$53.99

Current Price

$82.18

$28.19 premium

UndervaluedFair: $53.99Overvalued
RDIBUndervalued (+40.0%)

Margin of Safety

+40.0%

Fair Value

$23.52

Current Price

$8.90

$14.62 discount

UndervaluedFair: $23.52Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NFLX6 strengths · Avg: 9.8/10
Market CapQuality
$350.89B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.0%10/10

Every $100 of equity generates 43 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

RDIB1 strengths · Avg: 10.0/10
Debt/EquityHealth
-14.1810/10

Conservative balance sheet, low leverage

Areas to Watch

NFLX3 concerns · Avg: 4.0/10
PEG RatioValuation
1.694/10

Expensive relative to growth rate

P/E RatioValuation
26.9x4/10

Moderate valuation

Price/BookValuation
11.1x4/10

Trading at 11.1x book value

RDIB4 concerns · Avg: 2.3/10
Market CapQuality
$202.18M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3127.0%2/10

ROE of -3127.0% — below average capital efficiency

EPS GrowthGrowth
-29.0%2/10

Earnings declined 29.0%

Free Cash FlowQuality
$-2.98M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : RDIB

The strongest argument for RDIB centers on Debt/Equity. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : NFLX

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

Bear Case : RDIB

The primary concerns for RDIB are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

NFLX profiles as a growth stock while RDIB is a turnaround 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 (75/100 vs 25/100), backed by strong 28.5% margins and 16.2% revenue growth. RDIB offers better value entry with a 40.0% margin of safety. Both earn "Strong Buy" and "Avoid" 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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Reading International B Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Reading International, Inc., focuses on the ownership, development and operation of real estate and entertainment in the United States, Australia and New Zealand. The company is headquartered in Culver City, California.

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