Head-To-Head Survey: IQIYI (IQ) and Netflix (NFLX)

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IQIYI (NASDAQ: NFLX) and Netflix (NASDAQ:NFLX) are both large-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, dividends, analyst recommendations, valuation, profitability and earnings.

Earnings and Valuation

This table compares IQIYI and Netflix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IQIYI N/A N/A N/A N/A N/A
Netflix $11.69 billion 13.84 $558.92 million $1.25 297.39

Netflix has higher revenue and earnings than IQIYI.

Profitability

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

Net Margins Return on Equity Return on Assets
IQIYI N/A N/A N/A
Netflix 7.13% 25.66% 5.02%

Institutional and Insider Ownership

5.6% of IQIYI shares are owned by institutional investors. Comparatively, 73.8% of Netflix shares are owned by institutional investors. 4.3% of Netflix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for IQIYI and Netflix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IQIYI 0 3 1 0 2.25
Netflix 4 13 30 0 2.55

IQIYI currently has a consensus price target of $28.67, indicating a potential downside of 4.89%. Netflix has a consensus price target of $348.36, indicating a potential downside of 6.29%. Given IQIYI’s higher probable upside, analysts clearly believe IQIYI is more favorable than Netflix.

Summary

Netflix beats IQIYI on 8 of the 9 factors compared between the two stocks.

About IQIYI

iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand name in China. It operates a platform that provides a collection of Internet video content, including professionally-produced content licensed from professional content providers and self-produced content. The company also operates movie theaters in China. In addition, it provides membership, content distribution, live broadcasting, and online gaming services. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is based in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu Holdings Limited.

About Netflix

Netflix, Inc., an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens. It operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. The company offers TV shows and movies, including original series, documentaries, and feature films. It offers members with the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices. The company also provides DVDs-by-mail membership services. As of January 22, 2018, it had approximately 117 million members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.

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