WallStSmart

Netflix Inc (NFLX)vsWarner Bros Discovery Inc (WBD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Netflix Inc generates 30% more annual revenue ($48.37B vs $37.21B). NFLX leads profitability with a 0.3% profit margin vs -4.7%. NFLX appears more attractively valued with a PEG of 1.54. NFLX earns a higher WallStSmart Score of 71/100 (B).

NFLX

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 5.5Value: 4.0Quality: 7.5
Piotroski: 6/9Altman Z: 3.27

WBD

Hold

48

out of 100

Grade: D+

Growth: 5.3Profit: 3.5Value: 5.7Quality: 4.0
Piotroski: 4/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NFLXSignificantly Overvalued (-30.3%)

Margin of Safety

-30.3%

Fair Value

$56.49

Current Price

$71.71

$15.22 premium

UndervaluedFair: $56.49Overvalued
WBDUndervalued (+57.6%)

Margin of Safety

+57.6%

Fair Value

$65.97

Current Price

$26.30

$39.67 discount

UndervaluedFair: $65.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NFLX4 strengths · Avg: 9.5/10
Market CapQuality
$291.85B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
45.3%10/10

Every $100 of equity generates 45 in profit

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Free Cash FlowQuality
$1.37B8/10

Generating 1.4B in free cash flow

WBD3 strengths · Avg: 9.0/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$64.76B9/10

Large-cap with strong market position

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

NFLX4 concerns · Avg: 4.0/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Price/BookValuation
9.9x4/10

Trading at 9.9x book value

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
0.1%4/10

0.1% earnings growth

WBD4 concerns · Avg: 2.0/10
PEG RatioValuation
216.922/10

Expensive relative to growth rate

Return on EquityProfitability
-5.3%2/10

ROE of -5.3% — below average capital efficiency

Revenue GrowthGrowth
-1.0%2/10

Revenue declined 1.0%

Free Cash FlowQuality
$-476.00M2/10

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, Altman Z-Score.

Bull Case : WBD

The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.

Bear Case : NFLX

The primary concerns for NFLX are PEG Ratio, Price/Book, Revenue Growth. Thin 0.3% margins leave little buffer for downturns.

Bear Case : WBD

The primary concerns for WBD are PEG Ratio, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

NFLX profiles as a value stock while WBD is a turnaround play — different risk/reward profiles.

WBD carries more volatility with a beta of 1.55 — expect wider price swings.

NFLX is growing revenue faster at 0.1% — 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 48/100). WBD offers better value entry with a 57.6% margin of safety. 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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Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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