Analyzing Blucora (BCOR) & Netflix (NFLX)
Blucora (NASDAQ: BCOR) and Netflix (NASDAQ:NFLX) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.
Volatility and Risk
Blucora has a beta of -0.18, meaning that its stock price is 118% less volatile than the S&P 500. Comparatively, Netflix has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
This is a summary of recent ratings for Blucora and Netflix, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Blucora presently has a consensus price target of $25.33, suggesting a potential upside of 9.20%. Netflix has a consensus price target of $178.23, suggesting a potential upside of 6.64%. Given Blucora’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Blucora is more favorable than Netflix.
Earnings and Valuation
This table compares Blucora and Netflix’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Blucora||$491.58 million||2.12||$92.46 million||($1.02)||-22.75|
|Netflix||$10.19 billion||7.08||$706.92 million||$0.82||203.80|
Netflix has higher revenue and earnings than Blucora. Blucora is trading at a lower price-to-earnings ratio than Netflix, indicating that it is currently the more affordable of the two stocks.
This table compares Blucora and Netflix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
90.2% of Blucora shares are held by institutional investors. Comparatively, 81.0% of Netflix shares are held by institutional investors. 14.1% of Blucora shares are held by insiders. Comparatively, 4.9% of Netflix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Netflix beats Blucora on 9 of the 14 factors compared between the two stocks.
Blucora, Inc. is a provider of technology-enabled financial solutions to consumers, small business owners and tax professionals. The Company operates through the Wealth Management and Tax Preparation segments. The Company’s Wealth Management segment consists of HD Vest, which provides financial advisors with an integrated platform of brokerage, investment advisory and insurance services to assist in making each financial advisor a financial service center for his/her clients The Company’s Tax Preparation segment provides digital do-it-yourself (DDIY) tax preparation solutions for consumers, small business owners and tax professionals. TaxAct, a provider of digital tax preparation solutions. HD Vest’s specialized model provides an open-architecture investment platform and technology tools to help financial advisors identify investment opportunities for their clients. TaxAct offers pricing and packaging options for tax professionals.
Netflix, Inc. is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States. The Domestic DVD segment includes services, such as digital optical disc (DVD)-by-mail. The Company’s members can watch original series, documentaries, feature films, as well as television shows and movies directly on their Internet-connected screen, televisions, computers and mobile devices. It offers its streaming services both domestically and internationally. In the United States, its members can receive DVDs delivered to their homes. The Company had members streaming in over 190 countries, as of December 31, 2016.
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