Netflix vs Verizon Which Is Superior?

Netflix and Verizon are two well-known companies in the entertainment and telecommunications industries, respectively. Both companies have seen significant growth and success in recent years, with Netflix dominating the streaming market and Verizon maintaining a strong presence in the telecommunications sector. Investors may be interested in comparing the performance of these two stocks to determine which may be a better investment opportunity. By examining factors such as revenue, subscriber growth, and market share, investors can gain valuable insights into the potential future performance of Netflix and Verizon stocks.

Netflix or Verizon?

When comparing Netflix and Verizon, 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 Verizon.

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 Verizon has a dividend yield of 6.32%. 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, Verizon reports a 5-year dividend growth of 2.02% year and a payout ratio of 114.26%.

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 50.57 and Verizon's P/E ratio at 18.21. 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 17.32 while Verizon's P/B ratio is 1.85.

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 Verizon's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Netflix's ROE at 35.86% and Verizon's ROE at 10.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $909.62 for Netflix and $41.81 for Verizon. Over the past year, Netflix's prices ranged from $461.86 to $941.75, with a yearly change of 103.90%. Verizon's prices fluctuated between $37.14 and $45.36, with a yearly change of 22.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.