Phoenix New Media (NYSE:FENG – Get Free Report) and Netflix (NASDAQ:NFLX – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.
Profitability
This table compares Phoenix New Media and Netflix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phoenix New Media | -8.23% | -5.21% | -3.45% |
| Netflix | 24.58% | 42.50% | 19.42% |
Earnings & Valuation
This table compares Phoenix New Media and Netflix”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phoenix New Media | $96.40 million | 0.26 | -$7.45 million | ($0.66) | -3.18 |
| Netflix | $39.00 billion | 12.62 | $8.71 billion | $23.47 | 49.37 |
Netflix has higher revenue and earnings than Phoenix New Media. Phoenix New Media is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Phoenix New Media and Netflix, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phoenix New Media | 0 | 0 | 0 | 0 | 0.00 |
| Netflix | 3 | 10 | 22 | 1 | 2.58 |
Netflix has a consensus price target of $1,297.66, suggesting a potential upside of 12.00%. Given Netflix’s stronger consensus rating and higher probable upside, analysts plainly believe Netflix is more favorable than Phoenix New Media.
Institutional & Insider Ownership
6.3% of Phoenix New Media shares are owned by institutional investors. Comparatively, 80.9% of Netflix shares are owned by institutional investors. 10.9% of Phoenix New Media shares are owned by insiders. Comparatively, 1.4% of Netflix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Phoenix New Media has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Netflix has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.
Summary
Netflix beats Phoenix New Media on 14 of the 15 factors compared between the two stocks.
About Phoenix New Media
Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.
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.
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