Financial Analysis: Netflix (NASDAQ:NFLX) vs. Redbox Entertainment (NASDAQ:RDBX)
Netflix (NASDAQ: NFLX – Get rated) and Redbox Entertainment (NASDAQ: RDBX – Get rated) both are consumer discretionary companies, but which one is better for investment? We will compare the two businesses based on their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Profitability
This table compares Netflix and Redbox Entertainment net income, return on equity and return on assets.
| net margin | Return on equity | Return on assets | |
| Netflix | 16.47% | 32.01% | 11.53% |
| Redbox Entertainment | N/A | N/A | -59.93% |
Institutional and insider ownership
Netflix is 81.0% owned by institutional investors. Netflix is 2.4% owned by company insiders. Strong institutional ownership is a sign that hedge funds, big money managers and endowers think stocks will outperform the market in the long run.
Analyst Recommendations
This is a breakdown of the current Netflix and Redbox Entertainment ratings provided by MarketBeat.
| Sell Ratings | Keep ratings | Buy ratings | Strong buy ratings | Rating Score | |
| Netflix | 6 | 23 | ten | 0 | 2.10 |
| Redbox Entertainment | one | 2 | one | 0 | 2.00 |
Netflix’s consensus price target is currently $351.87, indicating upside potential of 102.98%. Redbox Entertainment has a consensus price target of 7.00, indicating a potential downside of 40.12%. Given Netflix’s stronger consensus rating and higher upside potential, analysts clearly see Netflix as more favorable than Redbox Entertainment.
Volatility and Risk
Netflix’s beta is 1.28, meaning its stock price is 28% more volatile than the S&P 500. By comparison, Redbox Entertainment has a beta of 2.96, meaning its stock price is 396% less volatile than the S&P 500.
Profit and valuation
This table compares Netflix and Redbox Entertainment total revenue, earnings per share, and valuation.
| Gross income | Price/sale ratio | Net profit | Earnings per share | Price/earnings ratio | |
| Netflix | $29.70 billion | 2.59 | $5.12 billion | $11.02 | 15.73 |
| Redbox Entertainment | $288.54 million | 1.84 | -112.79 million dollars | N/A | N/A |
Netflix has higher revenue and profit than Redbox Entertainment.
Summary
Netflix outperforms Redbox Entertainment on 12 out of 12 factors compared between the two stocks.
About Netflix (Get rated)
Netflix Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games in a variety of genres and languages. The company provides members with the ability to stream content through a variety of Internet-connected devices, including televisions, digital video players, set-top boxes, and mobile devices. It also provides mail-order DVD membership services in the United States. The company has about 222 million paying members in 190 countries. Netflix Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.
About Redbox Entertainment (Get rated)
Redbox Entertainment Inc. operates a chain of self-service kiosks in the United States. It operates a network of approximately 38,000 self-service kiosks where consumers can rent or purchase new DVDs and Blu-ray discs. The company provides installation, merchandising and repair services for other kiosks. It also produces, acquires, and distributes films through its film distribution label, Redbox Entertainment, LLC, providing the rights to films featuring talented people distributed through the company’s services as well as through third-party digital services. In addition, the company offers transactional and ad-supported digital streaming services, including Redbox On Demand, a transactional service that provides digital rental or purchase of new releases and catalogs of film and TV content; Redbox Free On Demand, an ad-supported service that provides free on-demand movies and TV shows; and Redbox Free Live TV, an ad-supported TV service with access to approximately 100 linear channels. The company is based in Oakbrook Terrace, Illinois.
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