fuboTV (NYSE:FUBO) and Netflix (NASDAQ:NFLX) Critical Analysis

fuboTV (NYSE:FUBO) and Netflix (NASDAQ:NFLX) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for fuboTV and Netflix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
fuboTV	1	2	6	1	2.70
Netflix	1	16	33	2	2.69

fuboTV presently has a consensus price target of $16.83, suggesting a potential upside of 108.88%. Netflix has a consensus price target of $114.26, suggesting a potential upside of 61.16%. Given fuboTV’s stronger consensus rating and higher possible upside, research analysts clearly believe fuboTV is more favorable than Netflix.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
fuboTV	-0.90%	-5.52%	-0.99%
Netflix	28.52%	40.92%	19.79%

Insider and Institutional Ownership

39.3% of fuboTV shares are owned by institutional investors. Comparatively, 80.9% of Netflix shares are owned by institutional investors. 5.3% of fuboTV shares are owned by company insiders. Comparatively, 1.2% of Netflix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares fuboTV and Netflix”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
fuboTV	$377.20 million	0.63	-$18.87 million	($1.27)	-6.35
Netflix	$45.18 billion	6.61	$10.98 billion	$3.10	22.87

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

Volatility & Risk

fuboTV has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, Netflix has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Summary

Netflix beats fuboTV on 11 of the 15 factors compared between the two stocks.

About fuboTV

fuboTV, Inc. engages in providing subscription to sports, news, and entertainment content. It offers its services through streaming devices and on television, mobile phones, tablets, and computers. The company was founded by David Gandler, Alberto Horihuela Suarez, and Sung Ho Choi on February 20, 2009 and is headquartered in New York, NY.

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.