IDT vs NFLX

For growth investors, Netflix, Inc.

(NFLX) is the stronger pick with 15. 9% revenue growth year-over-year, versus 2. 1% for IDT Corporation (IDT). IDT Corporation (IDT) offers the better valuation at 17. 5x trailing P/E (14. 1x forward), making it the more compelling value choice. Analysts rate IDT Corporation (IDT) a "Buy" — based on 2 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.

On trailing P/E, IDT Corporation (IDT) is the cheapest at 17.

5x versus Netflix, Inc. at 34. 9x. On forward P/E, IDT Corporation is actually cheaper at 14. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: IDT Corporation wins at 0. 47x versus Netflix, Inc. 's 0. 75x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, IDT Corporation (IDT) delivered a total return of +123.

5%, compared to +76. 7% for Netflix, Inc. (NFLX). Over 10 years, the gap is even starker: NFLX returned +875. 3% versus IDT's +324. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Netflix, Inc.

(NFLX) is the lower-risk stock at 0. 39β versus IDT Corporation's 0. 68β — meaning IDT is approximately 75% more volatile than NFLX relative to the S&P 500. On balance sheet safety, IDT Corporation (IDT) carries a lower debt/equity ratio of 1% versus 54% for Netflix, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Netflix, Inc.

(NFLX) is pulling ahead at 15. 9% versus 2. 1% for IDT Corporation (IDT). On earnings-per-share growth, the picture is similar: Netflix, Inc. grew EPS 27. 6% year-over-year, compared to 18. 5% for IDT Corporation. Over a 3-year CAGR, NFLX leads at 12. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Netflix, Inc.

(NFLX) is the more profitable company, earning 24. 3% net margin versus 6. 2% for IDT Corporation — 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 8. 2% for IDT. 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, IDT Corporation (IDT) is the more undervalued stock at a PEG of 0. 47x versus Netflix, Inc. 's 0. 75x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, IDT Corporation (IDT) trades at 14. 1x forward P/E versus 24. 8x for Netflix, Inc. — 10. 7x cheaper on a one-year earnings basis.

In this comparison, IDT (0.

4% yield) pays a dividend. NFLX does not pay a meaningful dividend and should not be held primarily for income.

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. 39), +875. 3% 10Y return). Both have compounded well over 10 years (NFLX: +875. 3%, IDT: +324. 0%), 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.

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.

In terms of investment character: IDT is a small-cap deep-value stock; NFLX is a large-cap high-growth stock. 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.