Redbox Entertainment (NASDAQ:RDBX) & Netflix (NASDAQ:NFLX) Financial Analysis

Redbox Entertainment (NASDAQ:RDBXGet Rating) and Netflix (NASDAQ:NFLXGet Rating) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Redbox Entertainment and Netflix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Redbox Entertainment 1 2 1 0 2.00
Netflix 6 23 10 0 2.10

Redbox Entertainment presently has a consensus target price of 7.00, indicating a potential downside of 38.65%. Netflix has a consensus target price of $350.29, indicating a potential upside of 96.31%. Given Netflix’s stronger consensus rating and higher probable upside, analysts clearly believe Netflix is more favorable than Redbox Entertainment.

Earnings & Valuation

This table compares Redbox Entertainment and Netflix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Redbox Entertainment $288.54 million 1.85 -$112.79 million N/A N/A
Netflix $29.70 billion 2.64 $5.12 billion $11.02 16.01

Netflix has higher revenue and earnings than Redbox Entertainment.

Institutional and Insider Ownership

81.0% of Netflix shares are owned by institutional investors. 2.4% of Netflix shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Redbox Entertainment N/A N/A -59.93%
Netflix 16.47% 32.01% 11.53%

Risk & Volatility

Redbox Entertainment has a beta of -2.96, meaning that its share price is 396% less volatile than the S&P 500. Comparatively, Netflix has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500.

Summary

Netflix beats Redbox Entertainment on 12 of the 12 factors compared between the two stocks.

About Redbox Entertainment (Get Rating)

Redbox Entertainment Inc. operates a network of self-service kiosks in the United States. It operates a network of approximately 38,000 self-service kiosks, where consumers could rent or purchase new-release DVDs and Blu-ray Discs. The company provides installation, merchandising, and break-fix services to other kiosk businesses. It also produces, acquires, and distributes movies through its film distribution label, Redbox Entertainment, LLC, providing rights to talent-led films that are distributed across the company's services, as well as through third party digital services. In addition, the company offers transactional and ad-supported digital streaming services, which include Redbox On Demand, a transactional service that provides digital rental or purchase of new release and catalog movies and TV content; Redbox Free On Demand, an ad-supported service providing free movies and TV shows on demand; and Redbox Free Live TV, an ad-supported television service giving access to approximately 100 linear channels. The company is based in Oakbrook Terrace, Illinois.

About Netflix (Get Rating)

Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and mobile games across various genres and languages. The company provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices. It also provides DVDs-by-mail membership services in the United States. The company has approximately 222 million paid members in 190 countries. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.

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