Comprehensive Stock Comparison
Compare Verizon Communications Inc. (VZ) vs Netflix, Inc. (NFLX) 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 VZ's 2.5% |
| Value | VZ | Lower P/E (10.2x vs 30.8x) |
| Quality / Margins | NFLX | 24.3% net margin vs VZ's 12.4% |
| Stability / Safety | VZ | Beta 0.10 vs NFLX's 0.76 |
| Dividends | VZ | 5.4% yield; 10-year raise streak; NFLX pays no meaningful dividend |
| Momentum (1Y) | VZ | +22.7% vs NFLX's -1.9% |
| Efficiency (ROA) | NFLX | 19.8% ROA vs VZ's 4.3%, ROIC 29.8% vs 8.0% |
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
Verizon is a telecommunications giant providing wireless and wireline connectivity services to consumers and businesses across the United States. It generates revenue primarily from wireless service plans (~70% of total revenue) and equipment sales, supplemented by Fios broadband, video, and business solutions. The company's key advantage is its extensive nationwide network infrastructure—particularly its 5G leadership—which creates high switching costs for customers and barriers to entry for competitors.
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.
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). VZ leads in 2 (Valuation Metrics, Risk & Volatility).
Financial Metrics (TTM)
VZ is the larger business by revenue, generating $138.5B annually — 3.1x NFLX's $45.2B. NFLX is the more profitable business, keeping 24.3% of every revenue dollar as net income compared to VZ's 12.4%. On growth, NFLX holds the edge at +17.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | VZVerizon Communica… | NFLXNetflix, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $138.5B | $45.2B |
| EBITDAEarnings before interest/tax | $47.8B | $30.1B |
| Net IncomeAfter-tax profit | $17.2B | $11.0B |
| Free Cash FlowCash after capex | $23.1B | $9.5B |
| Gross MarginGross profit ÷ Revenue | +55.6% | +48.5% |
| Operating MarginEBIT ÷ Revenue | +21.2% | +29.5% |
| Net MarginNet income ÷ Revenue | +12.4% | +24.3% |
| FCF MarginFCF ÷ Revenue | +16.7% | +20.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.5% | +17.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +50.0% | +31.1% |
Valuation Metrics
At 12.3x trailing earnings, VZ trades at a 68% valuation discount to NFLX's 38.0x P/E. On an enterprise value basis, VZ's 8.3x EV/EBITDA is more attractive than NFLX's 13.7x.
| Metric | VZVerizon Communica… | NFLXNetflix, Inc. |
|---|---|---|
| Market CapShares × price | $211.4B | $407.8B |
| Enterprise ValueMkt cap + debt − cash | $393.0B | $413.2B |
| Trailing P/EPrice ÷ TTM EPS | 12.35x | 38.04x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.22x | 30.75x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.15x |
| EV / EBITDAEnterprise value multiple | 8.25x | 13.74x |
| Price / SalesMarket cap ÷ Revenue | 1.53x | 9.03x |
| Price / BookPrice ÷ Book value/share | 2.01x | 15.61x |
| Price / FCFMarket cap ÷ FCF | 10.51x | 43.10x |
Profitability & Efficiency
NFLX delivers a 41.3% return on equity — every $100 of shareholder capital generates $41 in annual profit, vs $16 for VZ. NFLX carries lower financial leverage with a 0.54x debt-to-equity ratio, signaling a more conservative balance sheet compared to VZ's 1.90x. On the Piotroski fundamental quality scale (0–9), NFLX scores 7/9 vs VZ's 6/9, reflecting strong financial health.
| Metric | VZVerizon Communica… | NFLXNetflix, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +16.3% | +41.3% |
| ROA (TTM)Return on assets | +4.3% | +19.8% |
| ROICReturn on invested capital | +8.0% | +29.8% |
| ROCEReturn on capital employed | +8.8% | +30.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 1.90x | 0.54x |
| Net DebtTotal debt minus cash | $181.5B | $5.4B |
| Cash & Equiv.Liquid assets | $19.0B | $9.0B |
| Total DebtShort + long-term debt | $200.6B | $14.5B |
| Interest CoverageEBIT ÷ Interest expense | 4.37x | 17.33x |
Total Returns (with DRIP)
A $10,000 investment in NFLX five years ago would be worth $17,479 today (with dividends reinvested), compared to $11,437 for VZ. Over the past 12 months, VZ leads with a +22.7% total return vs NFLX's -1.9%. The 3-year compound annual growth rate (CAGR) favors NFLX at 44.0% vs VZ's 14.5% — a key indicator of consistent wealth creation.
| Metric | VZVerizon Communica… | NFLXNetflix, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +25.4% | +5.8% |
| 1-Year ReturnPast 12 months | +22.7% | -1.9% |
| 3-Year ReturnCumulative with dividends | +49.9% | +198.8% |
| 5-Year ReturnCumulative with dividends | +14.4% | +74.8% |
| 10-Year ReturnCumulative with dividends | +48.3% | +930.4% |
| CAGR (3Y)Annualised 3-year return | +14.5% | +44.0% |
Risk & Volatility
VZ is the less volatile stock with a 0.10 beta — it tends to amplify market swings less than NFLX's 0.76 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. VZ currently trades 99.3% from its 52-week high vs NFLX's 71.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | VZVerizon Communica… | NFLXNetflix, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.10x | 0.76x |
| 52-Week HighHighest price in past year | $50.48 | $134.12 |
| 52-Week LowLowest price in past year | $10.60 | $75.01 |
| % of 52W HighCurrent price vs 52-week peak | +99.3% | +71.8% |
| RSI (14)Momentum oscillator 0–100 | 66.9 | 55.8 |
| Avg Volume (50D)Average daily shares traded | 28.1M | 38.8M |
Analyst Outlook
Wall Street rates VZ as "Hold" and NFLX as "Buy". Consensus price targets imply 21.8% upside for NFLX (target: $117) vs -1.6% for VZ (target: $49). VZ is the only dividend payer here at 5.41% yield — a key consideration for income-focused portfolios.
| Metric | VZVerizon Communica… | NFLXNetflix, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $49.36 | $117.25 |
| # AnalystsCovering analysts | 60 | 97 |
| Dividend YieldAnnual dividend ÷ price | +5.4% | — |
| Dividend StreakConsecutive years of raises | 10 | — |
| Dividend / ShareAnnual DPS | $2.71 | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.2% |
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 |
|---|---|---|---|
| Verizon Communicati… (VZ) | 100 | 77.83 | -22.2% |
| Netflix, Inc. (NFLX) | 100 | 217.16 | +117.2% |
Netflix, Inc. (NFLX) returned +75% over 5 years vs Verizon Communicati… (VZ)'s +14%. 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 |
|---|---|---|---|
| Verizon Communicati… (VZ) | $126.0B | $138.2B | +9.7% |
| Netflix, Inc. (NFLX) | $8.8B | $45.2B | +411.7% |
Verizon Communications Inc.'s revenue grew from $126.0B (2016) to $138.2B (2025) — a 1.0% CAGR. 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 |
|---|---|---|---|
| Verizon Communicati… (VZ) | 10.4% | 12.4% | +19.3% |
| Netflix, Inc. (NFLX) | 2.1% | 24.3% | +1049.7% |
Verizon Communications Inc.'s net margin went from 10% (2016) to 12% (2025). Netflix, Inc.'s net margin went from 2% (2016) to 24% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Verizon Communicati… (VZ) | 7.2 | 10 | +38.9% |
| Netflix, Inc. (NFLX) | 153.6 | 37.1 | -75.8% |
Verizon Communications Inc. has traded in a 7x–15x P/E range over 9 years; current trailing P/E is ~12x. Netflix, Inc. has traded in a 30x–154x P/E range over 9 years; current trailing P/E is ~38x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Verizon Communicati… (VZ) | 3.21 | 4.06 | +26.5% |
| Netflix, Inc. (NFLX) | 0.04 | 2.53 | +5783.7% |
Verizon Communications Inc.'s EPS grew from $3.21 (2016) to $4.06 (2025) — a 3% CAGR. Netflix, Inc.'s EPS grew from $0.04 (2016) to $2.53 (2025) — a 57% CAGR.
Chart 6Free Cash Flow — 5 Years
Verizon Communications Inc. generated $20B FCF in 2025 (+173% vs 2021). Netflix, Inc. generated $9B FCF in 2025 (+7269% vs 2021).
VZ vs NFLX: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is VZ or NFLX a better buy right now?
Verizon Communications Inc. (VZ) offers the better valuation at 12.3x trailing P/E (10.2x 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 has the better valuation — VZ or NFLX?
On trailing P/E, Verizon Communications Inc. (VZ) is the cheapest at 12.3x versus Netflix, Inc. at 38.0x. On forward P/E, Verizon Communications Inc. is actually cheaper at 10.2x.
03Which is the better long-term investment — VZ or NFLX?
Over the past 5 years, Netflix, Inc. (NFLX) delivered a total return of +74.8%, compared to +14.4% for Verizon Communications Inc. (VZ). 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 VZ's +48.3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — VZ or NFLX?
By beta (market sensitivity over 5 years), Verizon Communications Inc. (VZ) is the lower-risk stock at 0.10β versus Netflix, Inc.'s 0.76β — meaning NFLX is approximately 669% more volatile than VZ relative to the S&P 500. On balance sheet safety, Netflix, Inc. (NFLX) carries a lower debt/equity ratio of 54% versus 190% for Verizon Communications Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — VZ or NFLX?
Netflix, Inc. (NFLX) is the more profitable company, earning 24.3% net margin versus 12.4% for Verizon Communications 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 21.2% for VZ. 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.
06Is VZ or NFLX more undervalued right now?
On forward earnings alone, Verizon Communications Inc. (VZ) trades at 10.2x forward P/E versus 30.8x for Netflix, Inc. — 20.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NFLX: 21.8% to $117.25.
07Which pays a better dividend — VZ or NFLX?
In this comparison, VZ (5.4% yield) pays a dividend. NFLX does not pay a meaningful dividend and should not be held primarily for income.
08Is VZ or NFLX better for a retirement portfolio?
For long-horizon retirement investors, Verizon Communications Inc. (VZ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.10), 5.4% yield). Both have compounded well over 10 years (VZ: +48.3%, NFLX: +930.4%), 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.
09What are the main differences between VZ and NFLX?
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: VZ is a large-cap deep-value stock; NFLX is a large-cap quality compounder stock. VZ 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.
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- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 7%
- Dividend Yield > 2.1%