ITV (OTCMKTS:ITVPY) & Netflix (NASDAQ:NFLX) Head-To-Head Analysis

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

Valuation and Earnings

This table compares ITV and Netflix”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITV	$4.46 billion	0.90	$521.38 million	N/A	N/A
Netflix	$41.69 billion	11.85	$8.71 billion	$23.47	49.53

Netflix has higher revenue and earnings than ITV.

Analyst Ratings

This is a summary of recent ratings for ITV and Netflix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITV	1	3	0	0	1.75
Netflix	3	9	23	1	2.61

Netflix has a consensus price target of $1,334.03, indicating a potential upside of 14.75%. Given Netflix’s stronger consensus rating and higher probable upside, analysts plainly believe Netflix is more favorable than ITV.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ITV	N/A	N/A	N/A
Netflix	24.58%	42.50%	19.42%

Institutional and Insider Ownership

51.4% of ITV shares are held by institutional investors. Comparatively, 80.9% of Netflix shares are held by institutional investors. 0.1% of ITV shares are held by insiders. Comparatively, 1.4% of Netflix shares are held by 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.

Volatility & Risk

ITV has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Netflix has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Summary

Netflix beats ITV on 13 of the 13 factors compared between the two stocks.

About ITV

ITV plc, an integrated production, broadcasting, and streaming company, which creates, owns, and distributes content on various platforms worldwide. It operates through ITV Studios and Media & Entertainment segments. The ITV Studios segment creates and produces programs and formats that include sports, drama, entertainment, factual, and news for its own channels and other broadcasters. The segment also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Canada, Australia, Germany, France, Italy, Spain, the Netherlands, Sweden, Norway, Finland, and Denmark. In addition, this segment engages in licensing its finished programmes, formats, and third-party content internationally, as well as finances productions. The Media & Entertainment segment broadcasts and streams various contents on its family of free-to-air TV channels; and offers television advertising services. The company also delivers content through linear television broadcasting, as well as on the ITV Hub, BritBox UK, ITVX, catch up services on pay platforms, and through direct content deals. In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Premium subscription services. The company was founded in 1955 is based in London, the United Kingdom.

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.