Paramount vs Netflix

Paramount and Netflix are two prominent players in the entertainment industry, with both companies experiencing significant growth in recent years. Paramount, as a traditional movie studio, has a long history of producing blockbuster films and television shows. On the other hand, Netflix has revolutionized the industry with its streaming service and original content. Investors are closely monitoring the performance of both companies' stocks, as they navigate the evolving landscape of the entertainment industry.

Paramount or Netflix?

When comparing Paramount 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 Paramount 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. Paramount has a dividend yield of 2.01%, while Netflix has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Paramount reports a 5-year dividend growth of -14.52% year and a payout ratio of -15.71%. 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 Paramount P/E ratio at -5.35 and Netflix's P/E ratio at 42.79. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Paramount P/B ratio is 0.36 while Netflix's P/B ratio is 13.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Paramount has seen a 5-year revenue growth of 0.08%, while Netflix's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Paramount's ROE at -6.51% and Netflix's ROE at 32.93%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4.96 for Paramount and $699.78 for Netflix. Over the past year, Paramount's prices ranged from $4.06 to $5.92, with a yearly change of 45.81%. Netflix's prices fluctuated between $344.73 and $736.00, with a yearly change of 113.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.