NCMI vs NFLX

For growth investors, Netflix, Inc.

(NFLX) is the stronger pick with 15. 9% revenue growth year-over-year, versus 1. 0% for National CineMedia, Inc. (NCMI). Netflix, Inc. (NFLX) offers the better valuation at 34. 9x trailing P/E (24. 8x forward), making it the more compelling value choice. Analysts rate Netflix, Inc. (NFLX) a "Buy" — based on 99 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.

Over the past 5 years, Netflix, Inc.

(NFLX) delivered a total return of +76. 7%, compared to -85. 3% for National CineMedia, Inc. (NCMI). Over 10 years, the gap is even starker: NFLX returned +872. 1% versus NCMI's -71. 7%. 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 National CineMedia, Inc. 's 1. 26β — meaning NCMI is approximately 225% more volatile than NFLX relative to the S&P 500. On balance sheet safety, National CineMedia, Inc. (NCMI) carries a lower debt/equity ratio of 5% 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 1. 0% for National CineMedia, Inc. (NCMI). On earnings-per-share growth, the picture is similar: National CineMedia, Inc. grew EPS 52. 2% year-over-year, compared to 27. 6% for Netflix, Inc.. 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 -4. 4% for National CineMedia, 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 -5. 7% for NCMI. 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.

Analyst consensus price targets imply the most upside for NCMI: 109.

5% to $7. 50.

In this comparison, NCMI (3.

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), +872. 1% 10Y return). Both have compounded well over 10 years (NFLX: +872. 1%, NCMI: -71. 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.

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: NCMI is a small-cap income-oriented stock; NFLX is a large-cap high-growth stock. NCMI pays a dividend while NFLX does not, making them suitable for different income and tax situations. 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.