Cars.com (CARS) & Netflix (NFLX) Financial Comparison
Cars.com (NYSE: CARS) and Netflix (NASDAQ:NFLX) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.
Institutional and Insider Ownership
83.4% of Netflix shares are owned by institutional investors. 4.9% of Netflix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations for Cars.com and Netflix, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cars.com presently has a consensus price target of $34.00, indicating a potential upside of 24.50%. Netflix has a consensus price target of $208.80, indicating a potential upside of 11.15%. Given Cars.com’s stronger consensus rating and higher possible upside, research analysts plainly believe Cars.com is more favorable than Netflix.
This table compares Cars.com and Netflix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Cars.com and Netflix’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Netflix||$8.83 billion||9.21||$186.67 million||$0.99||189.76|
Netflix has higher revenue and earnings than Cars.com.
Netflix beats Cars.com on 7 of the 9 factors compared between the two stocks.
Cars.com Company Profile
Cars.com Inc. owns a digital automotive marketplace business (Cars.com). Cars.com is an online research destination for car shoppers. The Company is engaged in the sale of online subscription advertising products targeting car dealerships. It offers a suite of products and services targeting the automotive needs of its buyer and seller customers. Cars.com offers a digital automotive marketplace search engine that helps car buyers to make informed purchasing decisions and helps sellers to engage with a portion of their target customer base. This online automotive marketplace service connects buyers and sellers across five Websites: Cars.com, Auto.com, DealerRater.com, NewCars.com and PickupTrucks.com. Its automotive marketplace products also include credible user and automotive and dealer reviews. It is also engaged in the sale of display advertising to national advertisers. Car buyers and car owners interface with Cars.com primarily through the Cars.com sites and mobile applications.
Netflix Company Profile
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.
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