WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 3465% more annual revenue ($48.37B vs $1.36B). NFLX leads profitability with a 28.2% profit margin vs -5.7%. NFLX earns a higher WallStSmart Score of 71/100 (B).

NFLX

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 10.0Value: 4.0Quality: 7.5
Piotroski: 6/9Altman Z: 3.27

SPHR

Hold

36

out of 100

Grade: F

Growth: 6.7Profit: 2.5Value: 4.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.93
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXSignificantly Overvalued (-31.4%)

Margin of Safety

-31.4%

Fair Value

$56.49

Current Price

$74.14

$17.65 premium

UndervaluedFair: $56.49Overvalued
SPHRSignificantly Overvalued (-27.5%)

Margin of Safety

-27.5%

Fair Value

$74.34

Current Price

$159.54

$85.20 premium

UndervaluedFair: $74.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NFLX6 strengths · Avg: 9.5/10
Market CapQuality
$306.34B10/10

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

SPHR1 strengths · Avg: 8.0/10
Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

NFLX2 concerns · Avg: 4.0/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

SPHR4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
5.3%3/10

ROE of 5.3% — below average capital efficiency

Altman Z-ScoreHealth
0.932/10

Distress zone — elevated risk

Profit MarginProfitability
-5.7%1/10

Currently unprofitable

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 : SPHR

The strongest argument for SPHR centers on Price/Book. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : NFLX

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

Bear Case : SPHR

The primary concerns for SPHR are EPS Growth, Return on Equity, Altman Z-Score.

Key Dynamics to Monitor

NFLX profiles as a mature stock while SPHR is a turnaround play — different risk/reward profiles.

SPHR carries more volatility with a beta of 1.60 — 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 (71/100 vs 36/100), backed by strong 28.2% margins and 13.4% 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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