Financial Analysis: Netflix (NASDAQ:NFLX) vs. WhereverTV Broadcasting (OTCMKTS:TVTV)

Netflix (NASDAQ:NFLX) and WhereverTV Broadcasting (OTCMKTS:TVTV) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Netflix	24.30%	43.26%	20.36%
WhereverTV Broadcasting	N/A	N/A	-26.80%

Earnings and Valuation

This table compares Netflix and WhereverTV Broadcasting”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netflix	$45.18 billion	8.87	$10.98 billion	$2.53	37.50
WhereverTV Broadcasting	N/A	N/A	-$60,000.00	N/A	N/A

Netflix has higher revenue and earnings than WhereverTV Broadcasting.

Insider & Institutional Ownership

80.9% of Netflix shares are held by institutional investors. 1.4% of Netflix shares are held by company insiders. Comparatively, 54.6% of WhereverTV Broadcasting shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Netflix has a beta of 1.68, suggesting that its stock price is 68% more volatile than the S&P 500. Comparatively, WhereverTV Broadcasting has a beta of 6.46, suggesting that its stock price is 546% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Netflix and WhereverTV Broadcasting, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netflix	0	14	34	2	2.76
WhereverTV Broadcasting	0	0	0	0	0.00

Netflix presently has a consensus target price of $114.67, suggesting a potential upside of 20.85%. Given Netflix’s stronger consensus rating and higher probable upside, equities analysts clearly believe Netflix is more favorable than WhereverTV Broadcasting.

Summary

Netflix beats WhereverTV Broadcasting on 10 of the 12 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 WhereverTV Broadcasting

WhereverTV Broadcasting Corporation provides subscription television service worldwide. Its platform enables subscribers to access licensed and free-to-air channels across multiple devices via its patented interactive program guide technology. The company's platform manages broadcast rights across geographies and provides individual customer viewing experiences based on customer locations (geo-targeting) and content-rights management (subscriptions). Its in-language subscription offerings include Spanish, Arabic, and Greek; and genre specific subscriptions include various content, such as news, faith, dramas, sports, movies, reality, kid's, and others. WhereverTV Broadcasting Corporation was incorporated in 2006 and is based in Fort Myers, Florida.