Netflix, Inc. (NFLX) vs TKO Group Holdings, Inc. (TKO)

Netflix, Inc. and TKO Group Holdings, Inc. are both Entertainment companies. Netflix, Inc. is the larger, with a market value of $269.2B against $35.8B — 7.5× the size. Netflix, Inc. trades at the lower P/E: 18.6× against 63.1×. Netflix, Inc. grew revenue faster over the last twelve months: 14.7% against 5.07%. Netflix, Inc. has the higher net margin (29.7% vs 4.33%) and the higher return on invested capital (28.9% vs 5.35%). Across the 22 metrics below, Netflix, Inc. leads on 12 and TKO Group Holdings, Inc. on 10.

Valuation

Metric NFLX TKO Entertainment median
P/E 18.61 63.10 24.17
P/S 5.45 2.66 1.36
P/B 9.25 1.69 1.75
Price to free cash flow 25.66 8.44 17.36
EV/EBITDA 8.22 11.19 8.85
EV/Sales 5.53 3.29 1.68
Earnings yield 5.37% 1.58% (1.47%)
Free cash flow yield 3.90% 11.85% 3.98%

Profitability

Metric NFLX TKO Entertainment median
Gross margin 50.68% 59.46% 40.04%
Operating margin 31.30% 18.82% 2.30%
Net margin 29.69% 4.33% 0.00%
Free cash flow margin 22.87% 31.55% 4.34%
Return on equity 53.46% 2.46% 2.72%
Return on assets 25.99% 1.45% 0.00%
Return on invested capital 28.85% 5.35% 0.55%

Growth

Metric NFLX TKO Entertainment median
Revenue growth (TTM) 14.65% 5.07% 8.28%
EPS growth (last fiscal year) 27.58% 11,200.00% 9.67%
Revenue growth, 5-year CAGR 12.57% 37.19% 10.07%
Net income growth, 5-year CAGR 31.80% 8.20% 0.00%

Health

Metric NFLX TKO Entertainment median
Debt to equity 0.43 0.58 0.46
Current ratio 1.07 1.28 1.00
Net debt to EBITDA 0.15 2.07 0.97

Dividend

Metric NFLX TKO Entertainment median
Dividend yield — 1.66% 1.23%
Payout ratio — 1.10 0.26

Size

Metric NFLX TKO Entertainment median
Market cap 269.21b 35.80b 3.27b

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