Walmart vs Netflix Which Is More Lucrative?

Walmart and Netflix are two of the largest and most well-known companies in the world, but they operate in very different industries. While Walmart is a retail giant with a long history of success, Netflix is a relatively new player in the entertainment industry. Both companies have seen their stocks perform well in recent years, but they face different challenges and opportunities moving forward. This comparison will examine the strengths and weaknesses of each company's stock performance and provide insights into which might be a better investment option for investors.

Walmart or Netflix?

When comparing Walmart 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 Walmart 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. Walmart has a dividend yield of 0.88%, while Netflix has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Walmart reports a 5-year dividend growth of 1.85% year and a payout ratio of 33.23%. 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 Walmart P/E ratio at 38.50 and Netflix's P/E ratio at 50.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Walmart P/B ratio is 8.60 while Netflix's P/B ratio is 17.32.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Walmart has seen a 5-year revenue growth of 0.34%, while Netflix's is 1.11%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Walmart's ROE at 23.31% and Netflix's ROE at 35.86%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $93.04 for Walmart and $909.62 for Netflix. Over the past year, Walmart's prices ranged from $50.51 to $96.18, with a yearly change of 90.41%. Netflix's prices fluctuated between $461.86 and $941.75, with a yearly change of 103.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.