Netflix, Inc. (NFLX) vs Skydance Corporation (SKYD)

Netflix, Inc. and Skydance Corporation are both Entertainment companies. Netflix, Inc. is the larger, with a market value of $269.2B against $41.1B — 6.6× the size. Skydance Corporation has negative trailing earnings, so its P/E is not meaningful; Netflix, Inc. trades at 18.6×. Netflix, Inc. grew revenue faster over the last twelve months: 14.7% against 1.23%. Netflix, Inc. has the higher net margin (29.7% vs −2.13%) and the higher return on invested capital (28.9% vs 2.62%). Across the 21 metrics below, Netflix, Inc. leads on 14 and Skydance Corporation on 7.

Valuation

Metric NFLX SKYD Entertainment median
P/E 18.61 n/m 24.17
P/S 5.45 0.31 1.36
P/B 9.25 0.71 1.75
Price to free cash flow 25.66 19.44 17.36
EV/EBITDA 8.22 1.36 8.85
EV/Sales 5.53 0.77 1.68
Earnings yield 5.37% (3.06%) (1.47%)
Free cash flow yield 3.90% 5.14% 3.98%

Profitability

Metric NFLX SKYD Entertainment median
Gross margin 50.68% 33.33% 40.04%
Operating margin 31.30% 3.70% 2.30%
Net margin 29.69% (2.13%) 0.00%
Free cash flow margin 22.87% 1.61% 4.34%
Return on equity 53.46% (4.15%) 2.72%
Return on assets 25.99% (1.39%) 0.00%
Return on invested capital 28.85% 2.62% 0.55%

Growth

Metric NFLX SKYD Entertainment median
Revenue growth (TTM) 14.65% 1.23% 8.28%
EPS growth (last fiscal year) 27.58% 98.76% 9.67%
Revenue growth, 5-year CAGR 12.57% 2.70% 10.07%
Net income growth, 5-year CAGR 31.80% 0.00% 0.00%

Health

Metric NFLX SKYD Entertainment median
Debt to equity 0.43 1.13 0.46
Current ratio 1.07 1.04 1.00
Net debt to EBITDA 0.15 0.63 0.97

Dividend

Metric NFLX SKYD Entertainment median
Dividend yield — 2.44% 1.23%
Payout ratio — — 0.26

Size

Metric NFLX SKYD Entertainment median
Market cap 269.21b 41.09b 3.27b

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