Meta vs Netflix Which Is More Promising?

Meta Platforms (formerly Facebook) and Netflix are two of the biggest players in the tech and entertainment industries. Both companies offer unique services to users, with Meta focusing on social networking and content creation, while Netflix dominates the streaming market with its vast library of content. However, their stocks have shown different trajectories in recent years, with Meta facing regulatory challenges and stagnant user growth, while Netflix continues to attract subscribers and grow its international presence. Investors must consider the strengths and weaknesses of each company when making investment decisions.

Meta or Netflix?

When comparing Meta 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 Meta 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. Meta has a dividend yield of -%, while Netflix has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Meta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Meta P/E ratio at -2.97 and Netflix's P/E ratio at 51.45. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Meta P/B ratio is 0.20 while Netflix's P/B ratio is 17.62.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Meta has seen a 5-year revenue growth of -1.00%, while Netflix's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Meta's ROE at -6.21% and Netflix's ROE at 35.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ฿0.13 for Meta and $912.71 for Netflix. Over the past year, Meta's prices ranged from ฿0.11 to ฿0.21, with a yearly change of 90.91%. Netflix's prices fluctuated between $450.76 and $935.27, with a yearly change of 107.49%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.