Head-To-Head Comparison: Netflix (NASDAQ:NFLX) versus Beasley Broadcast Group (NASDAQ:BBGI)
by Sarita Garza · The Markets DailyNetflix (NASDAQ:NFLX – Get Free Report) and Beasley Broadcast Group (NASDAQ:BBGI – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Profitability
This table compares Netflix and Beasley Broadcast Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Netflix | 24.05% | 41.86% | 19.52% |
| Beasley Broadcast Group | -3.84% | -2.59% | -0.69% |
Volatility & Risk
Netflix has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Beasley Broadcast Group has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.
Earnings and Valuation
This table compares Netflix and Beasley Broadcast Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netflix | $39.00 billion | 10.19 | $8.71 billion | $2.39 | 39.23 |
| Beasley Broadcast Group | $240.29 million | 0.04 | -$5.89 million | ($4.73) | -1.06 |
Netflix has higher revenue and earnings than Beasley Broadcast Group. Beasley Broadcast Group is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
80.9% of Netflix shares are held by institutional investors. Comparatively, 21.7% of Beasley Broadcast Group shares are held by institutional investors. 1.4% of Netflix shares are held by company insiders. Comparatively, 52.8% of Beasley Broadcast Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Netflix and Beasley Broadcast Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netflix | 1 | 13 | 29 | 2 | 2.71 |
| Beasley Broadcast Group | 1 | 0 | 0 | 0 | 1.00 |
Netflix presently has a consensus target price of $129.68, indicating a potential upside of 38.31%. Given Netflix’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Netflix is more favorable than Beasley Broadcast Group.
Summary
Netflix beats Beasley Broadcast Group on 14 of the 15 factors compared between the two stocks.
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.
About Beasley Broadcast Group
Beasley Broadcast Group, Inc., a multi-platform media company, owns and operates radio stations in the United States. The company offers local and national advertisers integrated marketing solutions across audio, digital, and event platforms. It operates Houston Outlaws, an esports team that competes in the Overwatch League; and an esports team that competes in the Rocket League. Beasley Broadcast Group, Inc. was founded in 1961 and is based in Naples, Florida.