In today’s rapidly evolving entertainment landscape, Netflix, Inc. (NFLX) and Comcast Corporation (CMCSA) stand as two titans vying for supremacy. While Netflix revolutionized streaming with its direct-to-consumer model, Comcast leverages its extensive cable and media operations to capture audiences across multiple platforms. Both companies operate within the Communication Services sector, yet their innovation strategies and market approaches differ significantly. Join me as we dive into this comparison and uncover which of these companies presents the most compelling investment opportunity.
Table of contents
Company Overview
Netflix, Inc. Overview
Netflix, Inc. is a leading player in the entertainment services sector, providing a vast array of TV series, documentaries, feature films, and mobile games to its 222M subscribers across 190 countries. Founded in 1997 and headquartered in Los Gatos, California, Netflix has revolutionized content consumption through its streaming platform, enabling users to access a diverse library of content across various devices. The company has embraced a subscription-based model, focusing on original programming to enhance viewer engagement and maintain its competitive edge in an increasingly crowded market.
Comcast Corporation Overview
Comcast Corporation operates as a comprehensive media and technology company, engaging in multiple sectors including cable communications, media, studios, theme parks, and international operations through its Sky segment. Established in 1963 and based in Philadelphia, Pennsylvania, Comcast offers a variety of services such as broadband, video, and wireless under the Xfinity brand, while also managing NBCUniversal’s television and streaming platforms, including the Peacock streaming service. With a workforce of approximately 182K employees, Comcast’s diverse business model allows it to leverage synergies across its various segments.
Key similarities between Netflix and Comcast include their presence in the communication services sector and their focus on providing streaming content. However, their business models differ significantly; Netflix primarily relies on a subscription-based approach for its streaming service, while Comcast generates revenue through a combination of cable services, advertising, and content production.
Income Statement Comparison
The following table presents a comparison of key income statement metrics for Netflix, Inc. and Comcast Corporation for the fiscal year ending December 31, 2024.
| Metric | Netflix, Inc. | Comcast Corporation |
|---|---|---|
| Revenue | 39B | 124B |
| EBITDA | 26B | 38B |
| EBIT | 11B | 23B |
| Net Income | 9B | 16B |
| EPS | 2.03 | 4.17 |
Interpretation of Income Statement
In 2024, Netflix and Comcast exhibited strong revenue growth, with Netflix increasing from 33.7B to 39B and Comcast from 121.6B to 123.7B. Notably, Netflix’s net income rose significantly from 5.4B to 9B, indicating improved profitability. Comcast also showed resilience, with net income reaching 16B. While both companies maintained healthy EBITDA margins, Netflix’s margins improved, reflecting operational efficiencies. Overall, Netflix’s growth trajectory indicates a positive trend, although the competition in the streaming sector remains intense. Investors should remain vigilant regarding market conditions and competitive pressures.
Financial Ratios Comparison
In this section, I present a comparative analysis of the most recent revenue and key financial ratios for Netflix, Inc. (NFLX) and Comcast Corporation (CMCSA).
| Metric | NFLX | CMCSA |
|---|---|---|
| ROE | 35.21% | 18.92% |
| ROIC | 20.20% | 8.56% |
| P/E | 4.39 | 9.06 |
| P/B | 1.55 | 1.71 |
| Current Ratio | 1.22 | 0.68 |
| Quick Ratio | 1.22 | 0.68 |
| D/E | 0.73 | 1.16 |
| Debt-to-Assets | 33.55% | 37.22% |
| Interest Coverage | 14.49 | 5.64 |
| Asset Turnover | 0.73 | 0.46 |
| Fixed Asset Turnover | 24.47 | 1.98 |
| Payout Ratio | 0% | 29.73% |
| Dividend Yield | 0% | 3.28% |
Interpretation of Financial Ratios
The analysis indicates that NFLX exhibits stronger profitability and efficiency ratios compared to CMCSA. With a significantly higher ROE and ROIC, NFLX showcases effective capital utilization. However, CMCSA’s higher dividend yield might appeal to income-focused investors, though its high D/E ratio raises concerns about leverage. Overall, while NFLX presents an attractive growth profile, potential investors should remain cautious regarding CMCSA’s financial health and debt levels.
Dividend and Shareholder Returns
Netflix, Inc. (NFLX) does not pay dividends, aligning with its reinvestment strategy to fuel growth and innovation. This approach may increase long-term shareholder value, particularly in a high-growth phase. However, it’s essential to note that NFLX engages in share buybacks, indicating a commitment to returning capital to shareholders.
In contrast, Comcast Corporation (CMCSA) has a dividend payout ratio of approximately 30%, yielding about 3.3%. This balance between dividends and growth investments suggests a stable return for shareholders while supporting reinvestment in its operations. Overall, CMCSA’s approach appears more conducive to sustainable long-term value creation compared to NFLX’s focus on growth.
Strategic Positioning
In the competitive landscape of the streaming and media industry, Netflix (NFLX) holds a significant market share with approximately 222M paid members globally, positioning itself as a leader in entertainment services. Comcast (CMCSA), with its diverse media segments including cable, streaming, and theme parks, faces competitive pressure as it integrates its Peacock streaming service. While Netflix continues to innovate technologically, both companies must navigate disruptions, particularly from emerging platforms and shifting viewer preferences.
Stock Comparison
In the past year, both Netflix, Inc. (NFLX) and Comcast Corporation (CMCSA) have exhibited notable price movements, reflecting the dynamic trading landscape in the media and entertainment sector.
Trend Analysis
Netflix, Inc. (NFLX): Over the past year, the stock has experienced a remarkable price change of +114.23%, indicating a bullish trend overall. However, in the recent period from September 7, 2025, to November 23, 2025, the stock saw a decline of -16.14%, suggesting short-term bearish pressure. The highest price reached was $132.31, while the lowest was $47.41. The trend shows signs of deceleration, with a standard deviation of 24.91, indicating significant volatility in price movements.
Comcast Corporation (CMCSA): Conversely, CMCSA has faced a substantial price decrease of -37.63% over the past year, reflecting a bearish overall trend. Recently, from September 7, 2025, to November 23, 2025, the stock has also seen a decline of -19.35%. The highest price noted was $46.26, and the lowest was $27.35. The acceleration status indicates deceleration, with a standard deviation of 4.35, suggesting limited volatility compared to NFLX.
In summary, while NFLX demonstrates strong overall growth with short-term challenges, CMCSA is experiencing a significant downturn, warranting careful consideration for investors.
Analyst Opinions
Recent analyst recommendations indicate a strong consensus towards a “buy” for both Netflix, Inc. (NFLX) and Comcast Corporation (CMCSA). Analysts have rated NFLX with an A- based on solid return on equity and assets, despite some concerns over debt levels. Meanwhile, CMCSA received an A rating, demonstrating excellent cash flow and minimal debt, which enhances its investment appeal. Overall, the consensus for 2025 is a buy for both companies, reflecting optimism about their growth prospects and financial health.
Stock Grades
In this section, I’ll provide you with the latest stock ratings for Netflix, Inc. and Comcast Corporation based on reliable grading from established firms.
Netflix, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | maintain | Neutral | 2025-11-18 |
| Barclays | maintain | Equal Weight | 2025-11-18 |
| KGI Securities | upgrade | Outperform | 2025-11-03 |
| Canaccord Genuity | maintain | Buy | 2025-10-22 |
| Wells Fargo | maintain | Overweight | 2025-10-22 |
| Needham | maintain | Buy | 2025-10-22 |
| Wedbush | maintain | Outperform | 2025-10-22 |
| Piper Sandler | maintain | Overweight | 2025-10-22 |
| Guggenheim | maintain | Buy | 2025-10-22 |
Comcast Corporation Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | maintain | Neutral | 2025-11-03 |
| Barclays | maintain | Equal Weight | 2025-11-03 |
| Citigroup | maintain | Buy | 2025-11-03 |
| Benchmark | maintain | Buy | 2025-10-31 |
| TD Cowen | maintain | Buy | 2025-10-31 |
| Bernstein | maintain | Market Perform | 2025-10-31 |
| Scotiabank | maintain | Sector Perform | 2025-10-31 |
| Seaport Global | downgrade | Neutral | 2025-10-31 |
| Evercore ISI Group | maintain | Outperform | 2025-10-31 |
| Keybanc | downgrade | Sector Weight | 2025-10-31 |
Overall, Netflix shows a mix of maintained and upgraded grades, indicating a cautiously optimistic outlook, especially with KGI Securities upgrading it to Outperform. On the other hand, Comcast’s ratings reflect a stable but cautious sentiment, with several firms maintaining their ratings despite a downgrade from Seaport Global and Keybanc. This suggests that while both companies are viewed as solid investments, there are varying degrees of confidence in their future performance.
Target Prices
Reliable target price data from analysts indicates strong expectations for both Netflix, Inc. (NFLX) and Comcast Corporation (CMCSA).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Netflix, Inc. | 1500 | 1100 | 1399.55 |
| Comcast Corporation | 41.5 | 28 | 34.59 |
For Netflix, the target consensus of 1399.55 is significantly higher than its current price of 104.31, suggesting strong upside potential. Comcast’s consensus target of 34.59 also exceeds its current price of 27.35, indicating positive analyst sentiment as well.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Netflix, Inc. (NFLX) and Comcast Corporation (CMCSA).
| Criterion | Netflix, Inc. (NFLX) | Comcast Corporation (CMCSA) |
|---|---|---|
| Diversification | Low | High |
| Profitability | High (Net Margin: 22%) | Moderate (Net Margin: 13%) |
| Innovation | High | Moderate |
| Global presence | High | Moderate |
| Market Share | High | High |
| Debt level | Moderate (Debt/Equity: 0.73) | Moderate (Debt/Equity: 1.17) |
Key takeaways indicate that while Netflix excels in innovation and profitability, Comcast demonstrates strong diversification and a robust market presence. Both companies have manageable debt levels but differ in their global reach and innovation capabilities.
Risk Analysis
In the following table, I provide an overview of the key risks associated with Netflix, Inc. (NFLX) and Comcast Corporation (CMCSA).
| Metric | Netflix, Inc. (NFLX) | Comcast Corporation (CMCSA) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | Moderate |
Both companies face significant market and regulatory risks. For Netflix, the competitive landscape in streaming services remains intense, while Comcast grapples with regulation and operational challenges in its cable and broadband services. Recent shifts in consumer behavior also pose challenges.
Which one to choose?
When comparing Netflix, Inc. (NFLX) and Comcast Corporation (CMCSA), the fundamental analysis reveals notable differences. NFLX shows a strong revenue growth trend with a market capitalization of $38.3B and an A- rating, indicating solid performance metrics, including a net profit margin of 22.3% and a forward P/E ratio of 4.39. Conversely, CMCSA, with a market cap of $146.7B, has a A rating but has faced a bearish trend, with a price drop of 37.6% recently. Its net profit margin stands at 13.1% with a higher P/E of 9.06. Analyst sentiment leans towards NFLX for growth-oriented investors, while CMCSA may appeal to those seeking stability due to its dividend yield of 3.3%.
Investors should consider potential risks, including competitive pressures and market fluctuations that could impact both companies.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Netflix, Inc. and Comcast Corporation to enhance your investment decisions:
