Head-To-Head Review: Netflix (NASDAQ:NFLX) & ITV (OTCMKTS:ITVPY)

Netflix (NASDAQ:NFLX) and ITV (OTCMKTS:ITVPY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Netflix and ITV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Netflix	24.58%	42.50%	19.42%
ITV	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Netflix and ITV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netflix	3	9	23	1	2.61
ITV	1	3	0	0	1.75

Netflix presently has a consensus target price of $1,328.87, indicating a potential upside of 9.77%. Given Netflix’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Netflix is more favorable than ITV.

Institutional and Insider Ownership

80.9% of Netflix shares are owned by institutional investors. Comparatively, 51.4% of ITV shares are owned by institutional investors. 1.4% of Netflix shares are owned by insiders. Comparatively, 0.1% of ITV shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Netflix and ITV”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netflix	$39.00 billion	13.19	$8.71 billion	$23.47	51.58
ITV	$4.46 billion	0.89	$521.38 million	N/A	N/A

Netflix has higher revenue and earnings than ITV.

Risk & Volatility

Netflix has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, ITV has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Summary

Netflix beats ITV on 13 of the 13 factors compared between the two stocks.

About Netflix

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.

About ITV

ITV plc, an integrated production, broadcasting, and streaming company, which creates, owns, and distributes content on various platforms worldwide. It operates through ITV Studios and Media & Entertainment segments. The ITV Studios segment creates and produces programs and formats that include sports, drama, entertainment, factual, and news for its own channels and other broadcasters. The segment also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Canada, Australia, Germany, France, Italy, Spain, the Netherlands, Sweden, Norway, Finland, and Denmark. In addition, this segment engages in licensing its finished programmes, formats, and third-party content internationally, as well as finances productions. The Media & Entertainment segment broadcasts and streams various contents on its family of free-to-air TV channels; and offers television advertising services. The company also delivers content through linear television broadcasting, as well as on the ITV Hub, BritBox UK, ITVX, catch up services on pay platforms, and through direct content deals. In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Premium subscription services. The company was founded in 1955 is based in London, the United Kingdom.