Netflix vs WPP

Netflix and WPP are two major players in the world of media and entertainment, with both companies having experienced significant growth and success in recent years. While Netflix has revolutionized the way we consume content with its streaming platform, WPP is a global advertising and marketing giant. Investors looking to capitalize on the booming media industry may be torn between these two stocks, each offering unique opportunities and challenges. In this comparison, we will examine the key differences and similarities between Netflix and WPP stocks to help investors make informed decisions.

Netflix or WPP?

When comparing Netflix and WPP, 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 WPP.

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 WPP has a dividend yield of 3.86%. 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, WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 313.03%.

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 WPP's P/E ratio at 203.81. 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 WPP's P/B ratio is 11.80.

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 WPP's is -0.78%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Netflix's ROE at 32.93% and WPP's ROE at 5.90%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $699.78 for Netflix and $49.47 for WPP. Over the past year, Netflix's prices ranged from $344.73 to $736.00, with a yearly change of 113.50%. WPP's prices fluctuated between $41.13 and $54.21, with a yearly change of 31.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.