Reviewing Gray Media (NYSE:GTN) and Netflix (NASDAQ:NFLX)

Netflix (NASDAQ:NFLX) and Gray Media (NYSE:GTN) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Netflix and Gray Media”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netflix	$43.38 billion	10.50	$8.71 billion	$2.39	44.97
Gray Media	$3.35 billion	0.15	$375.00 million	$0.41	12.00

Netflix has higher revenue and earnings than Gray Media. Gray Media is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Netflix has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, Gray Media has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

80.9% of Netflix shares are owned by institutional investors. Comparatively, 78.6% of Gray Media shares are owned by institutional investors. 1.4% of Netflix shares are owned by insiders. Comparatively, 15.2% of Gray Media shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Netflix and Gray Media, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netflix	1	12	30	2	2.73
Gray Media	1	1	3	0	2.40

Netflix currently has a consensus price target of $133.90, indicating a potential upside of 24.59%. Gray Media has a consensus price target of $7.25, indicating a potential upside of 47.36%. Given Gray Media’s higher possible upside, analysts plainly believe Gray Media is more favorable than Netflix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Netflix	24.05%	41.86%	19.52%
Gray Media	5.64%	10.31%	2.17%

Summary

Netflix beats Gray Media on 13 of the 15 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 Gray Media

Gray Television, Inc., a television broadcasting company, owns and/or operates television stations and digital assets in the United States. It also broadcasts secondary digital channels affiliated to ABC, CBS, NBC, and FOX, as well as various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, Circle, Telemundo, THE365, and Outlaw; and local news/weather channels in various markets. It owns and operates television stations and digital assets that serve television markets in the United States. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.