NFLX vs AAPL

For growth investors, Netflix, Inc.

(NFLX) is the stronger pick with 15. 9% revenue growth year-over-year, versus 6. 4% for Apple Inc. (AAPL). Netflix, Inc. (NFLX) offers the better valuation at 34. 7x trailing P/E (24. 7x 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.

On trailing P/E, Netflix, Inc.

(NFLX) is the cheapest at 34. 7x versus Apple Inc. at 38. 1x. On forward P/E, Netflix, Inc. is actually cheaper at 24. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Netflix, Inc. wins at 0. 75x versus Apple Inc. 's 1. 87x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Apple Inc.

(AAPL) delivered a total return of +125. 6%, compared to +77. 2% for Netflix, Inc. (NFLX). Over 10 years, the gap is even starker: AAPL returned +1155% versus NFLX's +883. 1%. 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 Apple Inc. 's 0. 99β — meaning AAPL is approximately 153% 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 152% for Apple 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 6. 4% for Apple Inc. (AAPL). On earnings-per-share growth, the picture is similar: Netflix, Inc. grew EPS 27. 6% year-over-year, compared to 22. 7% for Apple 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.

Apple Inc.

(AAPL) is the more profitable company, earning 26. 9% net margin versus 24. 3% for Netflix, Inc. — meaning it keeps 26. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AAPL leads at 32. 0% versus 29. 5% for NFLX. 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, Netflix, Inc. (NFLX) is the more undervalued stock at a PEG of 0. 75x versus Apple Inc. 's 1. 87x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Netflix, Inc. (NFLX) trades at 24. 7x forward P/E versus 33. 4x for Apple Inc. — 8. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NFLX: 32. 3% to $116. 29.

In this comparison, AAPL (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), +883. 1% 10Y return). Both have compounded well over 10 years (NFLX: +883. 1%, AAPL: +1155%), 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.

These companies operate in different sectors (NFLX (Communication Services) and AAPL (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: NFLX is a large-cap high-growth stock; AAPL is a mega-cap quality compounder 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.