Netflix Inc (NFLX)vsRio Tinto ADR (RIO)
NFLX
Netflix Inc
$82.18
+0.55%
COMMUNICATION SERVICES · Cap: $343.90B
RIO
Rio Tinto ADR
$100.69
-4.47%
BASIC MATERIALS · Cap: $168.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Rio Tinto ADR generates 23% more annual revenue ($57.64B vs $46.89B). NFLX leads profitability with a 28.5% profit margin vs 17.3%. NFLX appears more attractively valued with a PEG of 1.60. NFLX earns a higher WallStSmart Score of 75/100 (B).
NFLX
Strong Buy75
out of 100
Grade: B
RIO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-45.8%
Fair Value
$53.99
Current Price
$82.18
$28.19 premium
Margin of Safety
+24.5%
Fair Value
$129.94
Current Price
$100.69
$29.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 32.3%
Earnings expanding 86.4% YoY
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Every $100 of equity generates 35 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.3%
Generating 2.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Trading at 11.1x book value
Weak financial health signals
Expensive relative to growth rate
Earnings declined 5.6%
Comparative Analysis Report
WallStSmart ResearchBull 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 : RIO
The strongest argument for RIO centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : NFLX
The primary concerns for NFLX are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : RIO
The primary concerns for RIO are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
NFLX profiles as a growth stock while RIO is a mature play — different risk/reward profiles.
NFLX carries more volatility with a beta of 1.49 — 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 54/100), backed by strong 28.5% margins and 16.2% revenue growth. RIO offers better value entry with a 24.5% 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.
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.
Visit Website →Rio Tinto ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.
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