WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 22455% more annual revenue ($48.37B vs $214.46M). NFLX leads profitability with a 28.2% profit margin vs -5.9%. NFLX earns a higher WallStSmart Score of 73/100 (B).

NFLX

Strong Buy

73

out of 100

Grade: B

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

RDIB

Avoid

28

out of 100

Grade: F

Growth: 3.3Profit: 3.5Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: -0.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXSignificantly Overvalued (-36.8%)

Margin of Safety

-36.8%

Fair Value

$56.58

Current Price

$77.40

$20.82 premium

UndervaluedFair: $56.58Overvalued
RDIBUndervalued (+49.1%)

Margin of Safety

+49.1%

Fair Value

$27.73

Current Price

$17.02

$10.71 discount

UndervaluedFair: $27.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

RDIB1 strengths · Avg: 10.0/10
Debt/EquityHealth
-15.3010/10

Conservative balance sheet, low leverage

Areas to Watch

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

Trading at 10.7x book value

RDIB4 concerns · Avg: 2.3/10
Market CapQuality
$340.38M3/10

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%

Altman Z-ScoreHealth
-0.212/10

Distress zone — elevated risk

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 28.2% and operating margin at 33.4%. Revenue growth of 13.4% demonstrates continued momentum.

Bull Case : RDIB

The strongest argument for RDIB centers on Debt/Equity. Revenue growth of 10.8% demonstrates continued momentum.

Bear Case : NFLX

The primary concerns for NFLX are 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 mature stock while RDIB is a turnaround play — different risk/reward profiles.

NFLX carries more volatility with a beta of 1.53 — expect wider price swings.

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

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

Bottom Line

NFLX scores higher overall (73/100 vs 28/100), backed by strong 28.2% margins and 13.4% revenue growth. RDIB offers better value entry with a 49.1% 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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