Analyzing Netflix (NASDAQ:NFLX) and ITV (OTCMKTS:ITVPY)

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

Risk and Volatility

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

Analyst Recommendations

This is a summary of current recommendations for ITV and Netflix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITV	1	3	0	0	1.75
Netflix	3	9	24	1	2.62

Netflix has a consensus price target of $1,335.00, indicating a potential upside of 15.75%. Given Netflix’s stronger consensus rating and higher probable upside, analysts clearly believe Netflix is more favorable than ITV.

Earnings and Valuation

This table compares ITV and Netflix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITV	$4.46 billion	0.88	$521.38 million	N/A	N/A
Netflix	$39.00 billion	12.57	$8.71 billion	$23.47	49.14

Netflix has higher revenue and earnings 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%

Insider & Institutional Ownership

51.4% of ITV shares are owned by institutional investors. Comparatively, 80.9% of Netflix shares are owned by institutional investors. 0.1% of ITV shares are owned by company insiders. Comparatively, 1.4% of Netflix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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.