DISH Network Corp. (DISH), Amazon.com, Inc. (AMZN): Dished Unconscious Capitalism

Netflix, Inc. (NASDAQ:NFLX) is a media company that found out the hard way that not taking care of customers often hits the bottom line. In an ill-conceived and premature rush to wean customers off of physical DVD disks in 2011 the company created the long-lasting Qwikster debacle that led to it losing 800,000 subscribers and saw its customer satisfaction score go from 86 to 74.

However, Netflix, Inc. (NASDAQ:NFLX) has seemingly learned from its mistakes and has worked on improving its position with customers by providing higher quality content, including the production of multiple original series, highlighted by the Emmy nominated series House of Cards and revival of the cult classic Arrested Development. Employee satisfaction is average at Netflix, with 69% of employees satisfied with the leadership of CEO, Reed Hastings. The improved position of the company has seen streaming subscriptions increase by 630,000 over the last quarter and revenue up 20% from a year ago. However, an astronomical P/E ratio of 308.56 and a stock price of $244.48, which is near the 52 week high, suggest this growth may already be fully integrated into the price of the stock.

Where to go?

Although I don’t suggest investing in any media stocks, I believe DISH Network Corp. (NASDAQ:DISH) is an extremely bad choice as an investor in this sector. Dish Network is a company that looks to increase short term profits at the expense of employees and customers and I believe that this will eventually catch up to them.

In contrast, Amazon.com, Inc. (NASDAQ:AMZN) has always valued multiple stakeholders, including employees and customers and looks to provide long term growth and value over quick profits. Netflix, Inc. (NASDAQ:NFLX), also, has refocused on catering to its customers and looks to sustain growth and increase value over quick profits. As a result, Amazon and Netflix are much better choices than Dish Network for those looking to invest in growth media companies that should also provide long term value to multiple stakeholders..

Joshua Caldon has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Netflix. The Motley Fool owns shares of Amazon.com and Netflix.

The article Dished Unconscious Capitalism originally appeared on Fool.com.

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