Comprehensive Stock Comparison
Compare Netflix, Inc. (NFLX) vs Warner Bros. Discovery, Inc. (WBD) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NFLX | 15.9% revenue growth vs WBD's -4.8% |
| Value | WBD | Better valuation composite |
| Quality / Margins | NFLX | 24.3% net margin vs WBD's 1.3% |
| Stability / Safety | NFLX | Beta 0.76 vs WBD's 1.73, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | WBD | +145.8% vs NFLX's -1.9% |
| Efficiency (ROA) | NFLX | 19.8% ROA vs WBD's 0.5%, ROIC 29.8% vs -9.7% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Netflix is a global streaming entertainment service that offers original and licensed TV shows, movies, and documentaries. It generates revenue primarily through subscription fees — with three pricing tiers — and earns additional income from licensing its original content to other platforms. Its key advantage is its massive scale and data-driven content creation, which allows it to invest billions in programming that attracts and retains subscribers worldwide.
Warner Bros. Discovery is a global media and entertainment conglomerate that produces and distributes content across film, television, and streaming platforms. It generates revenue primarily through three segments: Studios (film and TV production), Networks (cable and broadcast channels), and Direct-to-Consumer (streaming services like Max and discovery+). The company's key advantage is its massive content library and iconic franchises — including DC, Harry Potter, HBO originals, and Discovery's unscripted programming — which create a deep moat in an increasingly competitive streaming landscape.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
NFLX leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). WBD leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
NFLX and WBD operate at a comparable scale, with $45.2B and $37.9B in trailing revenue. NFLX is the more profitable business, keeping 24.3% of every revenue dollar as net income compared to WBD's 1.3%. On growth, NFLX holds the edge at +17.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NFLXNetflix, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| RevenueTrailing 12 months | $45.2B | $37.9B |
| EBITDAEarnings before interest/tax | $30.1B | $16.4B |
| Net IncomeAfter-tax profit | $11.0B | $485M |
| Free Cash FlowCash after capex | $9.5B | $4.1B |
| Gross MarginGross profit ÷ Revenue | +48.5% | +44.0% |
| Operating MarginEBIT ÷ Revenue | +29.5% | +1.5% |
| Net MarginNet income ÷ Revenue | +24.3% | +1.3% |
| FCF MarginFCF ÷ Revenue | +20.9% | +10.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.6% | -6.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +31.1% | -2.1% |
Valuation Metrics
On an enterprise value basis, WBD's 10.1x EV/EBITDA is more attractive than NFLX's 13.7x.
| Metric | NFLXNetflix, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| Market CapShares × price | $407.8B | $76.3B |
| Enterprise ValueMkt cap + debt − cash | $413.2B | $110.5B |
| Trailing P/EPrice ÷ TTM EPS | 38.04x | -6.10x |
| Forward P/EPrice ÷ next-FY EPS est. | 30.75x | — |
| PEG RatioP/E ÷ EPS growth rate | 1.15x | — |
| EV / EBITDAEnterprise value multiple | 13.74x | 10.09x |
| Price / SalesMarket cap ÷ Revenue | 9.03x | 1.94x |
| Price / BookPrice ÷ Book value/share | 15.61x | 1.98x |
| Price / FCFMarket cap ÷ FCF | 43.10x | 17.23x |
Profitability & Efficiency
NFLX delivers a 41.3% return on equity — every $100 of shareholder capital generates $41 in annual profit, vs $1 for WBD. NFLX carries lower financial leverage with a 0.54x debt-to-equity ratio, signaling a more conservative balance sheet compared to WBD's 1.13x. On the Piotroski fundamental quality scale (0–9), NFLX scores 7/9 vs WBD's 4/9, reflecting strong financial health.
| Metric | NFLXNetflix, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| ROE (TTM)Return on equity | +41.3% | +1.3% |
| ROA (TTM)Return on assets | +19.8% | +0.5% |
| ROICReturn on invested capital | +29.8% | -9.7% |
| ROCEReturn on capital employed | +30.5% | -10.2% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 4 |
| Debt / EquityFinancial leverage | 0.54x | 1.13x |
| Net DebtTotal debt minus cash | $5.4B | $34.2B |
| Cash & Equiv.Liquid assets | $9.0B | $5.3B |
| Total DebtShort + long-term debt | $14.5B | $39.5B |
| Interest CoverageEBIT ÷ Interest expense | 17.33x | 1.85x |
Total Returns (with DRIP)
A $10,000 investment in NFLX five years ago would be worth $17,479 today (with dividends reinvested), compared to $4,842 for WBD. Over the past 12 months, WBD leads with a +145.8% total return vs NFLX's -1.9%. The 3-year compound annual growth rate (CAGR) favors NFLX at 44.0% vs WBD's 21.7% — a key indicator of consistent wealth creation.
| Metric | NFLXNetflix, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| YTD ReturnYear-to-date | +5.8% | -1.2% |
| 1-Year ReturnPast 12 months | -1.9% | +145.8% |
| 3-Year ReturnCumulative with dividends | +198.8% | +80.3% |
| 5-Year ReturnCumulative with dividends | +74.8% | -51.6% |
| 10-Year ReturnCumulative with dividends | +930.4% | +12.7% |
| CAGR (3Y)Annualised 3-year return | +44.0% | +21.7% |
Risk & Volatility
NFLX is the less volatile stock with a 0.76 beta — it tends to amplify market swings less than WBD's 1.73 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. WBD currently trades 93.9% from its 52-week high vs NFLX's 71.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NFLXNetflix, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.76x | 1.73x |
| 52-Week HighHighest price in past year | $134.12 | $30.00 |
| 52-Week LowLowest price in past year | $75.01 | $7.52 |
| % of 52W HighCurrent price vs 52-week peak | +71.8% | +93.9% |
| RSI (14)Momentum oscillator 0–100 | 55.8 | 58.5 |
| Avg Volume (50D)Average daily shares traded | 38.8M | 20.9M |
Analyst Outlook
Wall Street rates NFLX as "Buy" and WBD as "Hold". Consensus price targets imply 21.8% upside for NFLX (target: $117) vs -9.2% for WBD (target: $26).
| Metric | NFLXNetflix, Inc. | WBDWarner Bros. Disc… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $117.25 | $25.59 |
| # AnalystsCovering analysts | 97 | 31 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 1 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +2.2% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Netflix, Inc. (NFLX) | 100 | 217.16 | +117.2% |
| Warner Bros. Discov… (WBD) | 100 | 104.24 | +4.2% |
Netflix, Inc. (NFLX) returned +75% over 5 years vs Warner Bros. Discov… (WBD)'s -52%. A $10,000 investment in NFLX 5 years ago would be worth $17,479 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Netflix, Inc. (NFLX) | $8.8B | $45.2B | +411.7% |
| Warner Bros. Discov… (WBD) | $6.5B | $39.3B | +505.2% |
Netflix, Inc.'s revenue grew from $8.8B (2016) to $45.2B (2025) — a 19.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Netflix, Inc. (NFLX) | 2.1% | 24.3% | +1049.7% |
| Warner Bros. Discov… (WBD) | 18.4% | -28.8% | -256.5% |
Netflix, Inc.'s net margin went from 2% (2016) to 24% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Netflix, Inc. (NFLX) | 153.6 | 37.1 | -75.8% |
| Warner Bros. Discov… (WBD) | 28.8 | 15.3 | -46.9% |
Netflix, Inc. has traded in a 30x–154x P/E range over 9 years; current trailing P/E is ~38x. Warner Bros. Discovery, Inc. has traded in a 11x–29x P/E range over 4 years; current trailing P/E is ~-6x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Netflix, Inc. (NFLX) | 0.04 | 2.53 | +5783.7% |
| Warner Bros. Discov… (WBD) | 1.96 | -4.62 | -335.7% |
Netflix, Inc.'s EPS grew from $0.04 (2016) to $2.53 (2025) — a 57% CAGR.
Chart 6Free Cash Flow — 5 Years
Netflix, Inc. generated $9B FCF in 2025 (+7269% vs 2021). Warner Bros. Discovery, Inc. generated $4B FCF in 2024 (+83% vs 2021).
NFLX vs WBD: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is NFLX or WBD a better buy right now?
Netflix, Inc. (NFLX) offers the better valuation at 38.0x trailing P/E (30.8x forward), making it the more compelling value choice. Analysts rate Netflix, Inc. (NFLX) a "Buy" — based on 97 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — NFLX or WBD?
Over the past 5 years, Netflix, Inc. (NFLX) delivered a total return of +74.8%, compared to -51.6% for Warner Bros. Discovery, Inc. (WBD). A $10,000 investment in NFLX five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NFLX returned +930.4% versus WBD's +12.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — NFLX or WBD?
By beta (market sensitivity over 5 years), Netflix, Inc. (NFLX) is the lower-risk stock at 0.76β versus Warner Bros. Discovery, Inc.'s 1.73β — meaning WBD is approximately 127% more volatile than NFLX relative to the S&P 500. On balance sheet safety, Netflix, Inc. (NFLX) carries a lower debt/equity ratio of 54% versus 113% for Warner Bros. Discovery, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — NFLX or WBD?
Netflix, Inc. (NFLX) is the more profitable company, earning 24.3% net margin versus -28.8% for Warner Bros. Discovery, Inc. — meaning it keeps 24.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NFLX leads at 29.5% versus -25.5% for WBD. At the gross margin level — before operating expenses — NFLX leads at 48.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
05Is NFLX or WBD more undervalued right now?
Analyst consensus price targets imply the most upside for NFLX: 21.8% to $117.25.
06Which pays a better dividend — NFLX or WBD?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
07Is NFLX or WBD better for a retirement portfolio?
For long-horizon retirement investors, Netflix, Inc. (NFLX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.76), +930.4% 10Y return). Warner Bros. Discovery, Inc. (WBD) carries a higher beta of 1.73 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (NFLX: +930.4%, WBD: +12.7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
08What are the main differences between NFLX and WBD?
Both stocks operate in the Communication Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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