Netflix (NASDAQ:NFLX) and Paramount Skydance (NASDAQ:PSKY) Head to Head Analysis

Paramount Skydance (NASDAQ:PSKY) and Netflix (NASDAQ:NFLX) are both large-cap communication services companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Volatility and Risk

Paramount Skydance has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Netflix has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Valuation and Earnings

This table compares Paramount Skydance and Netflix”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Skydance	$28.76 billion	0.40	-$621.00 million	$0.29	35.10
Netflix	$45.18 billion	6.61	$10.98 billion	$3.18	22.55

Netflix has higher revenue and earnings than Paramount Skydance. Netflix is trading at a lower price-to-earnings ratio than Paramount Skydance, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Paramount Skydance and Netflix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paramount Skydance	-2.13%	4.11%	1.21%
Netflix	28.22%	40.02%	19.81%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Paramount Skydance and Netflix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Skydance	9	5	4	0	1.72
Netflix	2	16	33	4	2.71

Paramount Skydance presently has a consensus target price of $11.17, suggesting a potential upside of 9.69%. Netflix has a consensus target price of $95.51, suggesting a potential upside of 33.17%. Given Netflix’s stronger consensus rating and higher possible upside, analysts plainly believe Netflix is more favorable than Paramount Skydance.

Institutional and Insider Ownership

73.0% of Paramount Skydance shares are held by institutional investors. Comparatively, 80.9% of Netflix shares are held by institutional investors. 0.4% of Paramount Skydance shares are held by company insiders. Comparatively, 1.2% of Netflix shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Netflix beats Paramount Skydance on 14 of the 15 factors compared between the two stocks.

About Paramount Skydance

Paramount Global is a media and entertainment company which creates premium content and experiences for audiences. The company’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount , Pluto TV and Simon & Schuster, among others. Paramount Global, formerly known as ViacomCBS Inc., is based in NEW YORK.

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.