Netflix vs NVIDIA

Netflix and NVIDIA are two leading companies in the tech and entertainment industries, both offering innovative products and services to consumers worldwide. While Netflix dominates the streaming market with its vast library of original content, NVIDIA is a powerhouse in the gaming and graphics processing unit (GPU) industry. Investors often compare the performance of these two stocks, as both have shown impressive growth over the years. However, their success is influenced by different factors, making it essential for investors to carefully consider their options before deciding where to invest.

Netflix or NVIDIA?

When comparing Netflix and NVIDIA, 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 NVIDIA.

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 NVIDIA has a dividend yield of 0.03%. 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, NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.02%.

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 42.79 and NVIDIA's P/E ratio at 61.02. 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 13.73 while NVIDIA's P/B ratio is 55.62.

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 NVIDIA's is 1.68%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Netflix's ROE at 32.93% and NVIDIA's ROE at 115.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $699.78 for Netflix and $128.74 for NVIDIA. Over the past year, Netflix's prices ranged from $344.73 to $736.00, with a yearly change of 113.50%. NVIDIA's prices fluctuated between $39.23 and $140.76, with a yearly change of 258.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.