Skillz (NYSE:FIRY – Get Free Report) and Netflix (NASDAQ:NFLX – Get Free Report) are both communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Insider & Institutional Ownership
19.4% of Skillz shares are held by institutional investors. Comparatively, 80.9% of Netflix shares are held by institutional investors. 59.4% of Skillz shares are held by insiders. Comparatively, 1.2% of Netflix shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Skillz 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 | |
| Skillz | $104.50 million | 1.47 | -$70.41 million | ($4.42) | -2.22 |
| Netflix | $45.18 billion | 7.51 | $10.98 billion | $3.18 | 25.62 |
Netflix has higher revenue and earnings than Skillz. Skillz 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 summary of recent recommendations and price targets for Skillz and Netflix, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Skillz | 1 | 0 | 1 | 0 | 2.00 |
| Netflix | 1 | 17 | 33 | 4 | 2.73 |
Netflix has a consensus target price of $103.19, suggesting a potential upside of 26.68%. Given Netflix’s stronger consensus rating and higher possible upside, analysts clearly believe Netflix is more favorable than Skillz.
Volatility & Risk
Skillz has a beta of 4.56, indicating that its share price is 356% more volatile than the S&P 500. Comparatively, Netflix has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.
Profitability
This table compares Skillz and Netflix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Skillz | -60.23% | -66.50% | -24.36% |
| Netflix | 28.22% | 40.02% | 19.81% |
Summary
Netflix beats Skillz on 13 of the 15 factors compared between the two stocks.
About Skillz
Skillz Inc. operates a mobile games platform that connects players in fair, fun, and meaningful competition. The company primarily develops and supports a proprietary online-hosted technology platform that enables independent game developers to host tournaments and provide competitive gaming activity to end-users worldwide. It also hosts casual esports tournaments to a range of mobile players. The company distributes games through direct app download from its website, as well as through third-party platforms. Skillz Inc. was founded in 2012 and is headquartered in San Francisco, California.
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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