ANGI Homeservices (ANGI) versus Netflix (NFLX) Critical Review

ANGI Homeservices (NASDAQ: ANGI) and Netflix (NASDAQ:NFLX) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

68.7% of ANGI Homeservices shares are held by institutional investors. Comparatively, 83.3% of Netflix shares are held by institutional investors. 18.2% of ANGI Homeservices shares are held by company insiders. Comparatively, 4.9% of Netflix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for ANGI Homeservices and Netflix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANGI Homeservices 1 5 6 0 2.42
Netflix 1 15 32 0 2.65

ANGI Homeservices presently has a consensus price target of $12.23, suggesting a potential upside of 1.62%. Netflix has a consensus price target of $209.33, suggesting a potential upside of 2.09%. Given Netflix’s stronger consensus rating and higher possible upside, analysts plainly believe Netflix is more favorable than ANGI Homeservices.

Risk and Volatility

ANGI Homeservices has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Netflix has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
ANGI Homeservices -17.04% -25.20% -14.67%
Netflix 4.04% 14.56% 2.87%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ANGI Homeservices $323.33 million 2.33 -$7.85 million ($0.12) -100.24
Netflix $8.83 billion 10.05 $186.67 million $0.99 207.12

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

Summary

Netflix beats ANGI Homeservices on 13 of the 14 factors compared between the two stocks.

About ANGI Homeservices

ANGI Homeservices Inc. is focused on creating digital marketplace for home services, connecting homeowners across the globe with home service professionals. The Company operates 10 brands including Angie’s List, HomeAdvisor, HomeStars, Instapro, MyBuilder, MyHammer, Travaux, Werkspot, CraftJack and mHelpDesk. The Company’s brand portfolio provides homeowners with tools and resources for home repair, maintenance and improvement projects. Angie’s List is America’s online review platform and provides services ranging from home repair, maintenance and improvement to auto service and health care. HomeAdvisor is the operator of the home services marketplace across the globe. HomeStars is online platform connecting homeowners with home renovators, repairmen and retailers throughout Canada. Instapro is Italy’s home services network connecting homeowners with service professionals for home renovation projects.

About Netflix

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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