Comcast vs Netflix

Comcast and Netflix are two major players in the entertainment industry, but their approaches to business couldn't be more different. While Comcast is a traditional media conglomerate with a diverse portfolio of assets including cable television, internet, and theme parks, Netflix is a streaming powerhouse focused solely on digital content distribution. This contrast is reflected in their stock performance, with Comcast's stock price being more stable but with lower growth potential compared to Netflix's volatile but high-performing stock. Investors looking to capitalize on the changing landscape of media consumption should closely monitor these two stocks.

Comcast or Netflix?

When comparing Comcast and Netflix, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Comcast and Netflix.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Comcast has a dividend yield of 2.9%, while Netflix has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Comcast reports a 5-year dividend growth of 0.00% year and a payout ratio of 31.79%. On the other hand, Netflix reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Comcast P/E ratio at 10.90 and Netflix's P/E ratio at 42.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Comcast P/B ratio is 1.98 while Netflix's P/B ratio is 13.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Comcast has seen a 5-year revenue growth of 0.41%, while Netflix's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Comcast's ROE at 18.23% and Netflix's ROE at 32.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.55 for Comcast and $699.78 for Netflix. Over the past year, Comcast's prices ranged from $52.84 to $66.80, with a yearly change of 26.41%. Netflix's prices fluctuated between $344.73 and $736.00, with a yearly change of 113.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.