WallStSmart

Netflix Inc (NFLX)vsSphere Entertainment Co. (SPHR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 3437% more annual revenue ($46.89B vs $1.33B). NFLX leads profitability with a 28.5% profit margin vs 8.6%. NFLX trades at a lower P/E of 28.5x. NFLX earns a higher WallStSmart Score of 77/100 (B+).

NFLX

Strong Buy

77

out of 100

Grade: B+

Growth: 8.7Profit: 10.0Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 3.27

SPHR

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 4.0Value: 4.3Quality: 4.0
Piotroski: 1/9Altman Z: 0.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXSignificantly Overvalued (-56.1%)

Margin of Safety

-56.1%

Fair Value

$56.53

Current Price

$87.49

$30.96 premium

UndervaluedFair: $56.53Overvalued
SPHRFair Value (-1.9%)

Margin of Safety

-1.9%

Fair Value

$92.99

Current Price

$133.33

$40.34 premium

UndervaluedFair: $92.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NFLX6 strengths · Avg: 9.8/10
Market CapQuality
$371.60B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
48.5%10/10

Every $100 of equity generates 49 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

SPHR2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
37.7%10/10

Revenue surging 37.7% year-over-year

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

NFLX2 concerns · Avg: 4.0/10
P/E RatioValuation
28.5x4/10

Moderate valuation

Price/BookValuation
13.9x4/10

Trading at 13.9x book value

SPHR4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Operating MarginProfitability
2.8%3/10

Operating margin of 2.8%

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

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 : SPHR

The strongest argument for SPHR centers on Revenue Growth, Price/Book. Revenue growth of 37.7% demonstrates continued momentum.

Bear Case : NFLX

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

Bear Case : SPHR

The primary concerns for SPHR are EPS Growth, Return on Equity, Operating Margin. A P/E of 48.5x leaves little room for execution misses.

Key Dynamics to Monitor

NFLX profiles as a growth stock while SPHR is a hypergrowth play — different risk/reward profiles.

SPHR carries more volatility with a beta of 1.68 — expect wider price swings.

SPHR is growing revenue faster at 37.7% — sustainability is the question.

NFLX generates stronger free cash flow (5.1B), providing more financial flexibility.

Bottom Line

NFLX scores higher overall (77/100 vs 48/100), backed by strong 28.5% margins and 16.2% 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.

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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Sphere Entertainment Co.

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Madison Square Garden Entertainment Corp. The company is headquartered in New York, New York.

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