Compare TIM S.A. (TIMB) vs Netflix, Inc. (NFLX) Stock

TIM S.A. (TIMB) offers the better valuation at 15.7x trailing P/E (2.9x 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.

On trailing P/E, TIM S.A. (TIMB) is the cheapest at 15.7x versus Netflix, Inc. at 32.7x. On forward P/E, TIM S.A. is actually cheaper at 2.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: TIM S.A. wins at 0.15x versus Netflix, Inc.'s 0.80x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, TIM S.A. (TIMB) delivered a total return of +183.1%, compared to +53.5% for Netflix, Inc. (NFLX). A $10,000 investment in TIMB five years ago would be worth approximately $28K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NFLX returned +772.4% versus TIMB's +308.5%. 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), TIM S.A. (TIMB) is the lower-risk stock at 0.43β versus Netflix, Inc.'s 0.78β — meaning NFLX is approximately 79% more volatile than TIMB relative to the S&P 500. On balance sheet safety, Netflix, Inc. (NFLX) carries a lower debt/equity ratio of 54% versus 69% for TIM S.A. — giving it more financial flexibility in a downturn.

Netflix, Inc. (NFLX) is the more profitable company, earning 24.3% net margin versus 16.2% for TIM S.A. — 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 25.0% for TIMB. At the gross margin level — before operating expenses — TIMB leads at 53.9%, 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, TIM S.A. (TIMB) is the more undervalued stock at a PEG of 0.15x versus Netflix, Inc.'s 0.80x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, TIM S.A. (TIMB) trades at 2.9x forward P/E versus 26.4x for Netflix, Inc. — 23.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NFLX: 41.8% to $117.25.

In this comparison, TIMB (7.9% yield) pays a dividend. NFLX does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, TIM S.A. (TIMB) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.43), 7.9% yield, +308.5% 10Y return). Both have compounded well over 10 years (TIMB: +308.5%, NFLX: +772.4%), 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: TIMB is a mid-cap deep-value stock; NFLX is a large-cap quality compounder stock. TIMB 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.