Paramount Skydance (NASDAQ:PSKY) vs. Netflix (NASDAQ:NFLX) Head-To-Head Review

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 companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Recommendations

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

	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, indicating a potential upside of 10.45%. Netflix has a consensus target price of $95.51, indicating a potential upside of 32.36%. Given Netflix’s stronger consensus rating and higher possible upside, analysts clearly believe Netflix is more favorable than Paramount Skydance.

Insider & Institutional Ownership

73.0% of Paramount Skydance shares are owned by institutional investors. Comparatively, 80.9% of Netflix shares are owned by institutional investors. 0.4% of Paramount Skydance shares are owned by company insiders. Comparatively, 1.2% of Netflix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Skydance	$28.89 billion	0.39	-$621.00 million	$0.29	34.86
Netflix	$45.18 billion	6.65	$10.98 billion	$3.18	22.69

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%

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.