Comparing Netflix (NASDAQ:NFLX) & Phoenix New Media (NYSE:FENG)

Netflix (NASDAQ:NFLX – Get Free Report) and Phoenix New Media (NYSE:FENG – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Netflix and Phoenix New Media’s net margins, return on equity and return on assets.

Analyst Ratings

This is a breakdown of current ratings for Netflix and Phoenix New Media, as provided by MarketBeat.

Netflix presently 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, equities research analysts plainly believe Netflix is more favorable than Phoenix New Media.

Insider and Institutional Ownership

80.9% of Netflix shares are held by institutional investors. Comparatively, 6.3% of Phoenix New Media shares are held by institutional investors. 1.4% of Netflix shares are held by insiders. Comparatively, 10.9% of Phoenix New Media shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Netflix and Phoenix New Media”s gross revenue, earnings per share (EPS) and valuation.

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.

Risk and Volatility

Netflix has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Phoenix New Media has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Summary

Netflix beats Phoenix New Media on 14 of the 15 factors compared between the two stocks.

About Netflix

(Get Free Report)

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 Phoenix New Media

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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.