Netflix vs Apple Which Offers More Value?

Netflix and Apple are two of the biggest players in the technology and entertainment industries, with both companies experiencing significant growth and success in recent years. Investors have been closely watching their stocks, trying to determine which one offers better potential for long-term gains. While Netflix has been a dominant force in the streaming industry, Apple has a strong track record of innovation and success in various product categories. This comparison will explore the strengths and weaknesses of each company's stock and analyze which one may be the better investment option.

Netflix or Apple?

When comparing Netflix and Apple, 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 Netflix and Apple.

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. Netflix has a dividend yield of -%, while Apple has a dividend yield of 0.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Netflix reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Apple reports a 5-year dividend growth of -19.56% year and a payout ratio of 16.25%.

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 Netflix P/E ratio at 51.55 and Apple's P/E ratio at 39.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Netflix P/B ratio is 17.65 while Apple's P/B ratio is 65.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Netflix has seen a 5-year revenue growth of 1.11%, while Apple's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Netflix's ROE at 35.86% and Apple's ROE at 137.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $923.08 for Netflix and $246.26 for Apple. Over the past year, Netflix's prices ranged from $461.86 to $941.75, with a yearly change of 103.90%. Apple's prices fluctuated between $164.08 and $250.80, with a yearly change of 52.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.