Netflix (NASDAQ:NFLX) and BB Liquidating (OTCMKTS:BLIBQ) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Insider and Institutional Ownership
80.6% of Netflix shares are owned by institutional investors. 3.4% of Netflix shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and price targets for Netflix and BB Liquidating, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Netflix presently has a consensus price target of $493.90, suggesting a potential upside of 5.09%. Given Netflix’s higher possible upside, analysts clearly believe Netflix is more favorable than BB Liquidating.
Risk & Volatility
Netflix has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, BB Liquidating has a beta of 13.96, indicating that its stock price is 1,296% more volatile than the S&P 500.
This table compares Netflix and BB Liquidating’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Netflix and BB Liquidating’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Netflix||$20.16 billion||10.28||$1.87 billion||$4.13||113.79|
Netflix has higher revenue and earnings than BB Liquidating.
Netflix beats BB Liquidating on 9 of the 10 factors compared between the two stocks.
Netflix Company Profile
Netflix, Inc. provides Internet entertainment services. The company operates in three segments: Domestic streaming, International streaming, and Domestic DVD. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services. The company has approximately 139 million paid members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.
BB Liquidating Company Profile
BB Liquidating Inc. is in the process of liquidation of its remaining assets. Previously, it was operated and franchised entertainment-related stores in the United States and internationally. The company was formerly known as Blockbuster Inc. and changed its name to BB Liquidating Inc. in August 2011. BB Liquidating Inc. was founded in 1982 and is based in Dallas, Texas. On July 16, 2013, the voluntary petition of BB Liquidating Inc. for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on September 23, 2010. BB Liquidating Inc. operates as a subsidiary of DISH Network Corporation
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