Critical Contrast: fuboTV (NYSE:FUBO) & Netflix (NASDAQ:NFLX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Netflix	28.52%	40.92%	19.79%
fuboTV	-0.90%	-5.52%	-0.99%

Volatility & Risk

Netflix has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, fuboTV has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500.

Institutional & Insider Ownership

80.9% of Netflix shares are owned by institutional investors. Comparatively, 39.3% of fuboTV shares are owned by institutional investors. 1.2% of Netflix shares are owned by company insiders. Comparatively, 5.3% of fuboTV shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Netflix and fuboTV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netflix	1	16	33	2	2.69
fuboTV	1	2	6	1	2.70

Netflix currently has a consensus target price of $114.26, indicating a potential upside of 54.81%. fuboTV has a consensus target price of $16.83, indicating a potential upside of 70.62%. Given fuboTV’s stronger consensus rating and higher possible upside, analysts clearly believe fuboTV is more favorable than Netflix.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netflix	$45.18 billion	6.88	$10.98 billion	$3.10	23.81
fuboTV	$377.20 million	0.77	-$18.87 million	($1.27)	-7.77

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

Summary

Netflix beats fuboTV on 11 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 fuboTV

fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.