Financial Comparison: Netflix (NFLX) & Bitauto Holdings Limited (BITA)
Netflix (NASDAQ: NFLX) and Bitauto Holdings Limited (NYSE:BITA) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.
This is a summary of current ratings and recommmendations for Netflix and Bitauto Holdings Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bitauto Holdings Limited||0||0||1||0||3.00|
Netflix presently has a consensus target price of $180.00, suggesting a potential upside of 0.45%. Bitauto Holdings Limited has a consensus target price of $33.00, suggesting a potential downside of 29.02%. Given Netflix’s higher probable upside, equities research analysts plainly believe Netflix is more favorable than Bitauto Holdings Limited.
Earnings & Valuation
This table compares Netflix and Bitauto Holdings Limited’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Netflix||$10.19 billion||7.59||$706.92 million||$0.82||218.52|
|Bitauto Holdings Limited||$1.07 billion||3.03||$105.77 million||($1.21)||-38.42|
Netflix has higher revenue and earnings than Bitauto Holdings Limited. Bitauto Holdings Limited is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Netflix has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Bitauto Holdings Limited has a beta of 3.09, meaning that its stock price is 209% more volatile than the S&P 500.
This table compares Netflix and Bitauto Holdings Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bitauto Holdings Limited||-4.76%||3.85%||1.60%|
Institutional & Insider Ownership
81.0% of Netflix shares are owned by institutional investors. Comparatively, 19.7% of Bitauto Holdings Limited shares are owned by institutional investors. 4.9% of Netflix shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Netflix beats Bitauto Holdings Limited on 11 of the 14 factors compared between the two stocks.
Netflix, Inc. is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States. The Domestic DVD segment includes services, such as digital optical disc (DVD)-by-mail. The Company’s members can watch original series, documentaries, feature films, as well as television shows and movies directly on their Internet-connected screen, televisions, computers and mobile devices. It offers its streaming services both domestically and internationally. In the United States, its members can receive DVDs delivered to their homes. The Company had members streaming in over 190 countries, as of December 31, 2016.
About Bitauto Holdings Limited
Bitauto Holdings Limited is a provider of Internet content and marketing services for China’s automotive industry. The Company’s bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.
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