Netflix (NASDAQ: NFLX) and Weibo (NASDAQ:WB) are both large-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Insider and Institutional Ownership
81.6% of Netflix shares are owned by institutional investors. Comparatively, 22.4% of Weibo shares are owned by institutional investors. 4.9% of Netflix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Netflix and Weibo’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Netflix||$11.69 billion||11.93||$558.92 million||$1.43||224.86|
|$1.15 billion||25.29||$352.59 million||$1.55||84.83|
Netflix has higher revenue and earnings than Weibo. Weibo is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Netflix has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Weibo has a beta of 2.55, indicating that its share price is 155% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Netflix and Weibo, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Netflix presently has a consensus target price of $245.74, suggesting a potential downside of 23.57%. Weibo has a consensus target price of $128.25, suggesting a potential downside of 2.46%. Given Weibo’s stronger consensus rating and higher possible upside, analysts clearly believe Weibo is more favorable than Netflix.
This table compares Netflix and Weibo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Weibo beats Netflix on 8 of the 14 factors compared between the two stocks.
Netflix Company Profile
Netflix, Inc. is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States. The Domestic DVD segment includes services, such as digital optical disc (DVD)-by-mail. The Company’s members can watch original series, documentaries, feature films, as well as television shows and movies directly on their Internet-connected screen, televisions, computers and mobile devices. It offers its streaming services both domestically and internationally. In the United States, its members can receive DVDs delivered to their homes. The Company had members streaming in over 190 countries, as of December 31, 2016.
Weibo Company Profile
Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).
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